Published at: 6/21/2016 3:29:33 PM
If you’re in the market for a first home, you’re certainly not alone.
Research by ME found a whopping one in five Australians plan to buy a home this year. That means pitting yourself against a whole lot of other buyers including experienced upgraders and even investors.
The good news is, three simple strategies can put you in poll position to secure your ideal home.
1. Get smart about building a deposit
Here’s an important tip: Don’t aim to save ‘spare’ cash. ME found 49% of Australians wait until regular bills have been paid to save whatever is left over. It’s an approach almost certainly doomed to failure.
A better strategy is to give savings top priority.
Try setting up an automatic transfer that allocates a fixed percentage of your pay packet into a dedicated savings account each pay day (be sure to look for an account with zero fees). Worryingly, 16% of people grow savings in an everyday account, and that means earning little or no interest.
The money remaining in your everyday account is yours to spend. Just don’t dip into your savings. It’s a relatively painless way to grow a first home deposit, and it’s likely you won’t even notice the difference to your hip pocket.
2. Know market values
Competition may be intense among buyers but that shouldn’t mean paying over the odds for your first home.
Do plenty of research, talk to a wide range of selling agents, and above all, check out lots of homes firsthand to understand current listing prices – and more importantly, what they’re actually selling for.
3. Be ready to act fast
Be prepared to act fast when you see a property that’s right for you. Your ME Mobile Banker can help getting all your home loan ducks in a row so you’re ready to make a serious offer when the right property comes along.
Contact your ME Mobile Banker for more ideas on how you can beat the pack to the pick of properties.