It’s a tough question and we won’t tiptoe around it —
buying or building your first home is kind of a big deal.
Maybe you’ve been a savvy little saver and feel like you’re ready but as soon as you’re about to commit, those pesky doubts start sneaking in. But perhaps that’s not such a bad thing. Building your first home is not something that should be rushed, so we’ve put together these helpful tips to help you make sure you’re 100% new home ready.
No ifs, no buts, just crystal-clear confidence.
Your finances are in order
Before you can even think about building your first home you need to make sure you’ve saved up enough money. A 20% deposit is generally ideal to avoid paying lenders mortgage insurance (LMI) but not always necessary if you can secure help, such as that from a ‘Guarantor’ (you can read more about your options for getting into your first home faster below). Make sure you’ve also had a look into any government assistance you may be eligible for as well to help you along your way.
If you’ve managed to save up your deposit but still have some debt lingering around, take a step back and put all your efforts into clearing that up first. Another top tip is to make sure you have a nice little emergency fund that’s separate from your deposit savings for life’s unexpected hiccups. You’ll thank us later!
Your dreams have changed
Gone are the days of hostel life and backpacking around eastern Europe. It was fun while it lasted but now you’re a little bit older and ready to stay put, settle down and start a family. If this sounds like you then buying or building your first home is your next big step. But if you’re still dreaming of travelling far and wide without a care in the world, maybe the house can wait?
You’re happy in your career
Or just don’t hate it. Before you sign up to a mortgage and the ongoing costs that a new home brings, make sure that you’re comfortable enough in your work without feeling the need to quit or make a huge career change. While it can feel liberating to throw caution to the wind and set off on a new path, it can be stressful going through such a big life change with a brand new mortgage to keep on top of. Consider finding a new job first that leaves you smiling with a steady paycheck to match.
You’re done with renting
Or living with the ‘rents. Whether your food’s been pinched too many times or you just need your own space, there comes a time when buying or building your first home seems like the answer to all of your renting problems. But before you start curating Pinterest boards of your favourite interiors, take a minute to think about your rental history. Have you been a good tenant? While it’s not essential, it’s an extra bonus for proving to lenders that you have a solid history of always paying rent on time.
You know your stuff
Take all the time you need to research, research, research. Look into where you want to live, what ongoing costs are involved, and how much of your monthly income will go towards your mortgage (spoiler: it shouldn’t be any more than 30%). It’s also a good idea to make sure you’re up to speed on all the responsibilities that come with home ownership. Once you’ve got all this covered, you’ll feel much better about the big decision.
So, how did you go?
Are you ready to buy or build your first home? Or do you need some more time to prepare? Either way, just by reading these tips you’re one step closer to moving day. But there’s also another way to get into your dream home sooner and for less than you think. Say hello to Lifestyle Select, our all-new range of beautiful and affordable homes. You’ll save time and money with curated selections and fixed cost options that help fast-track your build. Think of it as the faster, easier and more affordable way to start building your first home.