So if you’re a Millennial, or even a Gen Z, you can be excused for feeling a little miffed when it comes to getting on the property ladder.
The good news is that thanks to the internet and Australia’s obsession with property there is far more information available today than ever before to help set you up for success early in your home ownership journey.
Here are three tips, courtesy of Property Update, that will make it easier for you to get into your first home.
- Make sure you pay down your credit card or personal loan debt fast. Once you get your first job, financial institutions will want to lend you money. Why? Because they make money from the interest you pay on your debt. Paying only the minimum amount will mean you pay your debt off more slowly and this can affect your ability to save a home deposit and even reduce the amount you can borrow for your home loan.
- Start saving early to get the benefit of compound interest. What’s that? Compounding is when your money grows and grows over the course of time. Choose a savings account with a good interest rate (not easy in today’s low interest environments, but every percentage point counts!) and deposit regular amounts, no matter how small, to get started.
- Don’t overspend and learn to delay gratification. We get it, this sounds like something your nagging aunt might say. But she has a point. Your home is likely to be the biggest financial commitment you ever make and developing good money habits by sticking to a budget and saving towards your goals will take the financial stress out of adjusting to mortgage repayments.
Got your cash sorted and ready to buy? View our current listings for sale.
In a committed relationship with renting? Check our listings for rent.