Tips for first-time buyers in 2018
The Australian housing market hasn’t always been a friendly place for first time buyers. With property prices looking as if they may soften for the first time in over half a decade, 2018 could be the year to get a foot on the elusive property ladder.
So, what can you do to secure your place on the property ladder this year?
Get into the market ASAP
You can spend years plotting your triumphant break into the buying scene at just the right moment, but nothing can beat just digging in and getting started.
Most are probably familiar with the saying “time in the market is always more important than timing the market”. Never is this truer than with first buyers. Sadly, there will be no ideal moment to appear in the property scene. Quality property in good areas will always rise in value over the long term and it’s best as a first-time buyer to get a foot on the ladder as soon as you can and settle in for a steady climb.
Affordable properties do exist
News surrounding the Australian property market focuses disproportionately on the big two: Sydney and Melbourne, home to some of the most inflated housing markets in the world. While these areas are convenient and home to 38 per cent of the country’s population, they are not the only places to buy property.
Smaller cities or towns outside the city boundaries provide a friendlier territory for those with a more moderate spending power. Cities like Brisbane can provide a steady economic growth in an up and coming area, but with deposits at $83,000, it’s a realistic aim for the first-time buyer.
Secure a deposit
Securing a deposit is the first major step to entering the market and often the most daunting one. Saving tens of thousands of dollars is an intimidating task, particularly while still paying rent and other day to day expenses. Here are a few things to bear in mind when preparing your deposit:
- Always clear your debts first. There is nothing more disheartening than seeing all your savings drain away into the debts you have already racked up. One thing at a time – get those debts under control first.
- Take advantage of the government’s First Home Super Saver Scheme. This can help you minimise the tax you pay on your savings so more goes into securing your first home.
- Ask your family to help out. Getting a loan from the bank of Mum and Dad, if possible, can be a great way to help boost you in the final stretch.
Make the most of low interest rates
One of the advantages of making the property leap this year is that interest rates are still relatively low. This paves the way for great deals on your home loan. If you’re ready to purchase your first home in 2018, contact the team at Premium Portfolio Finance today.
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