3 Ways A First Home Buyer Can Get Into The Market
Are you a first home buyer looking to break into the property market? It can be daunting when you first get started, but don't worry - it's not impossible. In this blog post, we will be looking at the three key ways that a first home buyer can get into the market and start their journey into the world of property ownership. We'll be discussing topics such as financial assistance, saving strategies, and resources available for first home buyers. So, if you're ready to take the plunge and become a home owner, read on!
Find the Right Home Loan for You
Finding the right home loan for you is one of the most important steps when it comes to buying your first home. It can be a daunting task, but with the right information and advice, it can be made easier.
When looking for a home loan, it’s important to consider the type of loan that best suits your needs. Loans are typically categorised as either fixed rate or variable rate. Fixed rate loans offer stability as the interest rate remains constant for the agreed term of the loan. This can be beneficial for those who want to budget ahead and know exactly what their repayments will be each month. Variable rate loans offer more flexibility and can be adapted to suit changing financial circumstances.
In addition to the type of loan, it’s important to consider the features of the loan. Look for features such as the ability to make additional repayments, the ability to redraw funds, and if there are any fees associated with the loan.
It’s also important to compare loans to ensure you’re getting the best deal. Compare loan rates and features from multiple providers to make sure you’re getting the best deal.
Once you’ve chosen the right loan, it’s important to consider the loan amount. It’s important to take into account your income, expenses, and any additional borrowing costs. Make sure you’re able to comfortably afford the loan repayments and that you have enough left over to meet any other financial obligations.
Finally, it’s important to consider the loan term. It’s important to consider how quickly you want to pay off the loan and how long you need to spread out the payments over.
Finding the right home loan can be a daunting task, but with the right information and advice, it can be made easier. Consider the type of loan, the features, the loan amount, and the loan term to ensure you’re getting the best deal.
Consider Government Incentives
Government incentives can be a great way for first home buyers to get into the market. Incentives like the First Home Loan Deposit Scheme and the First Home Super Saver Scheme (FHSSS) can help first home buyers purchase a property sooner than they may otherwise be able to.
The First Home Loan Deposit Scheme allows eligible first home buyers to purchase a home with a deposit of as little as 5%. This scheme allows first home buyers to avoid the costs associated with lenders mortgage insurance. The scheme is available to single buyers earning up to $125,000pa or couples earning up to $200,000pa.
The FHSSS allows first home buyers to save for a deposit faster. This scheme allows first home buyers to save money in their superannuation fund. This money can then be withdrawn and used as a deposit on their first home. This scheme is available to any first home buyer, regardless of their income.
There are also state-based incentives available, such as stamp duty concessions and grants. These vary from state to state, so first home buyers should do their research to find out what is available in their state.
When considering government incentives, first home buyers should keep in mind the eligibility criteria and the conditions that may be attached. They should also consider any costs associated with the scheme, such as application fees and any other fees or charges.
Finally, first home buyers should remember that they may be eligible for other assistance, such as the First Home Owner Grant. This grant is available to first home buyers in most states and territories and can help with the cost of purchasing a property.
Government incentives can be a great way to get into the property market for first home buyers, but it is important to keep in mind the various conditions and eligibility criteria. It is also important to research the various state-based incentives available, as these may be of assistance.
Have a Clear Savings Plan
Having a clear savings plan is essential for any first home buyer. A savings plan should be tailored to your individual situation, and should reflect your current income and expenses. It is important to remember that it is not about how much you can put aside, it is about how much you can save over time.
The first step in creating your savings plan is to understand your current financial situation. Take some time to review your income and expenses to determine what you can afford to save each month. It is also important to remember that any additional money you are able to save on top of your regular expenses should be put towards your home deposit.
Once you have determined how much you can save each month, you should look into ways you can increase your savings. Consider cutting down on unnecessary expenses and put that money towards your savings. You should also look into ways to increase your income, such as taking on a second job or investing in the stock market.
Finally, it is important to have a goal in mind. This will help keep you motivated and on track with your savings plan. Consider setting a target amount or a timeline to reach your goal. This will help ensure that you are consistently putting money away and getting closer to your dream of owning a home.
Creating a clear savings plan is essential for any first home buyer. It is important to have an understanding of your current financial situation, cut down on unnecessary expenses, increase your income and have a goal in mind. With a clear plan and determination, you will be in a much better position to get into the property market.
Understand the Financial Commitment Involved
When it comes to understanding the financial commitment involved with buying a property, it is important to be aware of the costs associated with the process.
First, there is the deposit. A deposit is the amount of money a buyer puts forward before a loan is approved. The buyer must also cover any stamp duty, which is a tax imposed by the state government on the purchase of a property.
Second, there are loan application and settlement fees. These are additional costs associated with the loan application process and the settlement of a loan, and can vary depending on the lender and the loan type.
Third, there are ongoing costs that come with owning a property. These include property and land taxes, insurance, maintenance and repairs. It is important to factor these costs into your budget when assessing affordability.
It is also important to consider how long you plan to stay in the property. If you are looking to buy a property as an investment, you should consider the costs of buying and selling, as well as any potential capital gains tax.
Finally, it is important to be aware of the financial commitment involved with family law matters. If you are buying a property with a partner, it is important to be aware of the implications of separating, and to seek legal advice if necessary.
It is important to do your research and to understand the financial commitment of buying a property before signing any contracts. Make sure you have a clear understanding of the costs associated with the purchase and ownership, as well as any potential future costs and commitments.
Got questions about your home loan? Let's talk
At Ello Lending, we understand the unique challenges facing first home buyers and are committed to helping them get into the property market. With our extensive knowledge and experience, we are well-placed to provide tailored advice and assistance to first home buyers.
If you're a first home buyer in need of assistance, don't hesitate to get in touch with us. Our team would be more than happy to answer any questions you may have and help you get into the property market.
We look forward to hearing from you!
