IF you are one of many Australians fed up with rising rents and a lack of available rental properties, then you might be surprised to hear that you could possibly afford to purchase a property with little to no change to current expenses.
With low interest rates and stable housing prices, now is a great time to consider buying.
Before taking the plunge however, potential home buyers need to factor in ongoing expenses associated with property ownership such as mortgage insurance, council rates, strata fees, maintenance and repairs.
Opportunities at the moment are fantastic for potential property owners who are confident of their job security and/or financial situation.
The low interest rates, low rental vacancy rates and continuing high levels of population growth are all positive factors for buying a property.
Purchasing a property in today’s ‘buyers’ market’ should give renters a great start to their property portfolio and help them make better use of their income. Building assets now will help them to get ahead in the long term.
Consider the following tips on saving for a deposit to buy property.
- Putting cents to good use
Work out a property purchase plan and timeline.
Firstly, go through your incomings and outgoings and establish a weekly or monthly budget, depending on your pay schedule.
Secondly, set yourself limitations and realistic expectations of what you want to achieve, then adjust your savings plan to suit.
Finally, consider any sacrifices you could make – you may find that if you knuckle down now you are able to afford some luxuries further down the track.
- Rent a room
Why not ask someone else to move into your spare room and help to pay half your rent.
This means you will be able to save half of your weekly expenses (or more if you are clever).
- Cheap Tuesday
If you want to go out to see the latest movies wait until Tuesday when ticket prices are reduced.
Keep in mind that many restaurants have a weekend surcharge and often have weekday specials, so organise a mid-week catch-up with mates instead.