First Home Buyers
Want to Buy Your First Home in Your 20s? Here’s How.
Forget jibes about smashed avocado or getting a good job. If you’re keen to get on the property ladder before you’re 30, such advice isn’t very helpful. If buying your first home in your 20s is on your to-do list, the following practical strategies will help you get there – no lectures about brunch in sight.
The price of property
Let’s face it: housing is much more expensive than it was in your parents’ generation, especially in property hot spots like Sydney and Melbourne. The good news? Housing affordability has improved a little in 2018. While we can’t predict the future of property prices, we can offer a few clever tips to help you buy your first home.
What it takes to own property: the home truths
Following three overarching strategies will help you become a property owner:
1) Be dedicated, focused, and a little optimistic
- Plan for the future with a dash of optimism. Don’t focus on house prices so much that you give up before you get started.
- It doesn’t matter if you’re on an entry-level salary just out of school, or in your late 20s with no savings history. It’s still possible to make changes and start saving today, but requires a shift in mindset and behaviour.
- If you’re truly passionate about owning your own home, your focus and determination will see you through. Focus on what you’ll gain in the end, not what you’re sacrificing to get there.
2) Make savvy financial choices
- Open a high-interest savings account and transfer a consistent amount before you pay for bills and groceries. This way, you won’t be tempted to touch your savings.
- Pay off any credit card debt as quickly as possible. Not only will this help your credit ranking, it means your income isn’t being wasted on high interest rates.
- Check your eligibility for the First Home Owners Grant, which is generally geared towards those building a new home.
3) Be prepared to compromise
- Don’t be scared to share: getting a flatmate will cut down your rental, electricity and water costs.
- Critically assess everything you buy and where you purchase from. Consider a cheaper supermarket, home brand alternatives, and a bank account with fewer fees or more rewards.
- Decide what you’re willing to sacrifice. You might not be prepared to give up three coffees a week but would happily forego Netflix. Choose compromises you know you can stick to.
A Final Word
Building a new home can be surprisingly affordable. You’ll save on building and pest inspections, and won’t have unexpected repair costs after purchasing. At G.J. Gardner Homes, we can help you build a lower-cost home – before the big 3-0