The property market can be an intimidating place especially if you’re thinking of owning your own home at such a young age, but it’s certainly not impossible.
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Importance of owning your own home
Not only is owning your own home a symbol of maturity, growth, and independence, but there are a whole lot of benefits that entail short-term and long-term financial success.
In terms of long-term success, owning a home allows for the building of an equity nest egg while short-term success includes enjoying potential tax deductions. Owning homes and properties are some of the best investments you can make.
As a first-time buyer, owning your own home can be a transformative personal experience just as it can be a financial one. By doing this, you are building your wealth due to home equity and fair market value, which typically increases over time.
With tax advantages, you are better able to save money to create a sense of stability for your financial future. Not only can owning a home help you in the now, but your future wealth, depending on if it depreciates or appreciates, can set you up for further success.
It is important to remember the responsibility that comes along with home ownership, though. Everything ranging from maintenance to the bills will be dropped in your hands.
Investing is best
If you have considered owning houses rather than having to deal with a landlord, you will have to take on an entrepreneurial role in the process. This is especially true as a first-home buyer or if you are buying under the age of 30.
The reason for this is that the first home that you buy may not be the first home that you live in. Instead, it could be an investment property that builds you up to owning your own home.
To buy your own home, you are usually looking for a place that meets all your expectations and requirements. It doesn’t have to be any different when looking for a property to invest in.
Along with finding a place that meets your standards, it can also be within your price bracket at the time. This entails leading based on your budget, picking a modestly priced home, and collecting rent through the residents.
This way, you can simultaneously save up for a deposit for when you want to purchase the home that you actually want to live in.
Save, save, save!
Maybe you’ve heard this too many times to count, but saving is key to owning your own home someday. When you’re tempted to splurge on a getaway trip or buy that daily coffee that you know adds up, consider the benefits of saving for a home.
A way to save for the property market is by putting aside money into a specific high-interest savings account. Try to find a bank that rewards you for depositing without withdrawals.
Simply putting away 3% of your home’s purchase price spanning over 6 months will put you in the good books of lenders. They are more likely to trust your saving and spending abilities.
Another strategy is to put away approximately half of any tax returns, commissions, or bonuses into that high-interest savings account.
When you apply for a mortgage, you have to have an adept credit score. This is the number that tells lenders if you are a good enough candidate to lend to, which is why your perceived trust should be higher than not.
Your credit score is based on if you make your repayments on time, how your finances are managed, your credit history, how much debt you have, loans, and more. This information goes hand-in-hand with your saving abilities.
Turn to people you trust
If you are having trouble figuring out how to own your own home, there is no shame in asking your parents for assistance. Ask them questions such as is being a homeowner worth it or is it better to put 5 or 20 down?
Your parent’s insight and experience will probably provide you with a substantial amount of knowledge to use in your own trek when it comes to owning your own home before thirty.
When applying for a mortgage, parental contribution to the deposit is up to $70,000. So, in conclusion, don’t be embarrassed to ask for a little help!
Your parents or other trusted guardians can also be the people to co-sign your mortgage as guarantors. Although this doesn’t look as good as putting forth your own savings, it can lessen the financial burden and still ignite trust.
Enlist professional help
Along with parental help, there are always available professionals who are eager to lend a helping hand. Buyer’s agents are experts when it comes to finding a home that fits your budget and financial strategy.
Buyer’s agents are also pros when it comes to negotiations, which can never hurt. When enlisting help, though, it is important that you do enough research to ensure that the advice you receive is tailored to your specific situation.
Many people make the mistake of allowing someone else to steer their home-buying prospects because they don’t believe they are equipped with a sufficient amount of knowledge.
When going into something as important as buying your first home or buying your first property, research can save you a whole lot of trouble.
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