If you are struggling to save a house deposit to get into your first home it can be frustrating to see friends or relatives managing to move into their new homes and stop renting. If you want to know how to stop renting and get into your first home, read on for some tips from people who’ve done exactly that.
1. Cut down your expenses
When you are trying to save for a first home it’s important to cut back all of your costs. Write out a detailed budget and work out which costs you can change, such as opting for a housemate rather than living alone or moving back home for a while to save. Not only does this allow you to get a kickstart on your savings, but it also shows the banks that you can stick to a budget which makes it much easier to get approved for a mortgage.
2. Review your selection criteria
While your ideal family home might be a four-bedroom house with an office and big yard in an established suburb, this might not be possible on a first home buyer’s budget. Go through the criteria and separate them into ‘must have’ and ‘nice to have’ criteria, so that you can see everything that is in your budget. Going for a smaller block or fewer bedrooms makes it easier to save your deposit and pay for your mortgage.
3. Consider building
In most areas you can get a lot more ‘bang for your buck’ when you buy a home and land package in less established suburbs. Not only do you get the fun of being able to choose a home that exactly suits your requirements and lifestyle, you also get a brand-new house which is likely to need a lot less maintenance and comes with warranties on many items. That means that you can spend weekends entertaining your friends and family in your new home rather than fixing dripping taps and repairing drooping gutters.
4. Gather your crew
If you are finding it hard to get your first home alone, why not see who can also buy a home with you? There is a growing trend for first home buyers to buy a home with their siblings, friends or parents as partial owners of the home. This is a good way to split the cost and responsibility of your first home while allowing you to take that all-important first step on the property ladder. In some cases, you may even be able to find someone who is prepared to take a percentage stake in the property without becoming a roommate, such as a parent, which can lower the deposit you need to save as well as making it easier to find a mortgage.
If you want to explore how to get on the property ladder and buy that first house, you should chat to a company that specialises in making first home buyer dreams come true, such as the New Home Group.

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