hi everyone,
My partner and i are looking at buying our first home.
We are currently saving about $2,000 a month and once my partners bills are gone will be able to save about $2,500. We are just wondering the best way to go about getting our first home would be?? We calcualted if we put our money in a fund and kept adding the 2g a month in about 7 years we will have $300,000 to buy a house. We would love to pay for our first house outright as we would like to own investment properties as well.
Is it better to wait and pay for house outright or save a 20% deposit and buy then?? Its hard to decide since house prices keep going up but they wont go up forever will they?? lolNot many people pay for their first place outright.
What if property prices go up quicker then you can save?
I'd get in when you have a good deposit together or when prices look like they are on the up.Hi Cass
Difficult one to answer however i have to agree if you can find value in what you buy i would be buying sooner rather than later.
Of course the First Home Owners Grant Boost has assisted many first home buyers get into their home sooner and the reduction Dec 31 will have an effect.
Personally to assist in financing the deal i would merely save it in a normal interest bearing account.
Most lenders will only go to 90% of the purchase price / valuation (with a few still at 95%) so with lending conditions still tight if you can show some genuine savings and have the affordability to qualify for a loan then at least paying back your loan repayments are benefiting you and not the landlord if you are currently renting.
Course who nows where prices will be in 5 years time but i happy to have a small wager with anyone that they wont be less than they are now.
By the time you wait to save your 20% deposit prices could have gone up another 20%.
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thank you for your replies, looks like we should just have a deposit then go for it. now we just need to orgainse where to buy buying a house is so stressful!!!! thank you again
another option is to look at buying investment properties first. You won't get the FHOG but could be an option
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