While the focus of Australians has shifted towards a more balanced lifestyle in recent years, 7 in 10 of us still feel it’s important to achieve the traditional Australian dream of home ownership. For many people, it feels harder than ever to achieve, but it’s certainly not impossible.
In fact, 87% of Australians hold the key wish of establishing financial security for the future, and one of the best ways to do that is owning your own home. Here’re some helpful tips to make your home ownership dream a reality.
Careful Planning and Budgeting
According to the 2020 Real Wishes Report, over 70% of Australians wish they could budget better and save more money. Well, if you want to buy your dream home, now is the time to start. Naturally, the idea is to save as much money as possible, but it’s a lot easier if you have a plan.
Firstly, you need to consider future mortgage payments. What can you realistically manage? That will determine the amount you can borrow, and therefore the budget range for your home. Once you’ve settled on that, you can start saving furiously for a deposit.
When budgeting, you need to consider every dollar you spend across a whole year. That shows you how much you need for essentials, and where you can trim your budget down and put more into savings.
Earning Extra Income
Easier said than done, right? “Everybody would earn extra income if they could,” we hear you say. Well, that’s not exactly true, because extra income is out there if you’re willing to put the time in. There are lots of ways to make a few extra dollars on the side, but it does mean sacrificing some free time.
Firstly, try to find income from something you love. If there’s a way to make money from things you already enjoy doing, that’s the best option. Alternatively, if you’re willing to part with a bit of your free time, look around for casual jobs you can do outside of normal hours.
Clear Your Debts
If you’ve ever tried to save money and pay off debts at the same time, you know how tough it can be. If you want to start saving for a new home, it’s a great idea to clear all of your other debts first. If you’re paying personal loans and credit cards, for example, the interest rate is probably much higher than you would get from a savings account. Therefore, it makes sense to clear those high-interest debts completely, and then start saving.
We’re extremely lucky in Australia to have access to a range of government schemes to help achieve our dreams of home ownership. You could access some or all of the following:
- First Home Owners Grant: A one-off grant to help first home buyers.
- First Home Loan Deposit Scheme: Helping Australians with first home deposits as low as 5%.
- First Home Super Saver: Save for your first home by contributing extra super. Easy saving with tax concessions.
- HomeBuilder Grant: A $25,000 grant for eligible people home builders. *Only available until 31 December, 2020.
So, while it seems like a big task, saving for your dream home doesn’t need to be impossible. There’s plenty of help out there, and the internet is full of places you can find tools and advice. To make your dream home a reality, start planning and saving today!