first lady

so you’ve decided it’s time to buy your first home – one of the biggest commitments life has to offer. not only is it an emotionally trying time but also financially – & then add on the confusion around what it takes to actually purchase your first home.

i’m personally at an age now where I’m seeing my own friends purchasing their first homes as well as selling homes to buyers my age – which is very exciting most of all but also really interesting to learn how they’re actually doing it. after all, we are the brunch & active wear generation who apparently also lack the work ethic of our parent baby boomers – whatever we may be, we are still in a position to buy a house.

first things first, get a saving plan & prepare to be incredibly tight. i have recently just sat down with a financial planner to crunch the numbers and calculate a weekly budget & believe me, it’s tough. living off a budget doesn’t necessarily mean wearing the same clothes every, eating cruskits for every meal and becoming a hermit crab – it’s more of a case of being a bit more selective about the meals you eat out or the dress you think you need. i made sure the budget allowed for eyebrow threading fortnightly (that’s a non negotiable!)

your personal circumstances will naturally influence your ability to save and the time it takes to see the hard work paying off. i know all too well the struggle of renting & trying to save – it’s a constant game of chasing you’re own tail which is where I would suggest reassessing your options sooner rather than later is a great idea to put yourself in the best position possible.

once you start to see the savings grow it sparks a little fire to keep going and this is where you can start thinking about what you want to buy. make a decision from the get go whether you are buying a property to live in yourself or as an investment and stick to it.

a deposit of anywhere between 10% – 20% is required, however having only 10% can mean you are going to need mortgage insurance which is a payment protecting your mortgage lender against your loan.

but unfortunately, that’s not it – the real cost of a home is far greater than the listed sale price you need to remember there’s that lenders mortgage insurance, there are home loan application fees, stamp duty, legal fees, insurance payments, mortgage registration fees and building inspection fees which all add up.

like it or not, the biggest part of first home buying is the deposit and continual income to service the loan over time. enjoying the house and calling it home is the easy part!

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