Owning property has always been the great Australian dream. Whether you are a first-timer or an experienced homebuyer, you need to ask yourself why you want to buy. Will you want to live in it or are you buying it as an investment to rent it out and pay it off. Do you want a house or apartment, large or small, townhouse or land to build?
A big part of the decision to purchase your first home should be based on your financial status and the impact a home loan will have on your finances and lifestyle. You will need to save funds to cover the initial purchase (e.g. deposit, legal costs and stamp duty), and then you will have the ongoing loan repayments to meet.
Some people start looking for homes before they know exactly how much they can afford. This is perhaps natural; looking for your potential home is a lot more exciting than researching the savings strategies that may help you get it. But to avoid frustration and disappointment it’s wise to do some research so you have a ballpark estimate of what you can afford. Firstly, you need to find out how much you may be able to borrow and how large your deposit needs to be. As with all financial decisions seeking advice from a professional financial adviser can ensure that any debt you are about to incur is suitably structured to maximize its benefit to you.