Home ownership tips – the current Australian Dream of 2020!
Has the great Australian Dream changed? Research shows that the majority of Australian’s perceive the ultimate dream to be owning a home in a desirable area. There is no longer a yearning for a McMansion on an acre block or penthouse apartment.
So how do we achieve the goal of owning a property outright? Here are our home ownership tips.
According to property researcher CoreLogic, the main barrier to buying a home is having the money for a deposit. Their Perceptions of Housing Affordability report surveyed 2200 Australians in August 2019 and 47% said saving for a deposit was their biggest hurdle.
Tips for obtaining a larger deposit
– SAVE YOUR MONEY. This is obvious, reduce your spending to save for a larger deposit. Some people choose to rent a cheaper apartment rather than a house or move in with the parents for a short period of time. The key lies in eliminating the smaller spontaneous $50 purchases. No matter the value, consider if the item is a necessity and if it is worth detracting from your home ownership goals.
– Buy a smaller property. Consider a smaller mortgage that requires a smaller deposit and is more achievable in terms of repayments.
– Review your last three months of spending. Once you are tracking your spending, you’ll be able to determine how much you can save for a deposit, if you can service a home loan, and of what size.
Given that interest rates are so low, there has never been a more affordable time to invest in your first property or upgrade your property location.
Looking to build your home? Here are the guidelines for the Home Builder’s Grant:
- No companies or trusts can apply.
- You must be aged 18 and over and an Australian citizen.
- You meet one of the following two income caps: $125,000 a year for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 a year for a couple based on both 2018-19 tax returns or later.
- You enter into a building contract (at arm’s length) between June 4, 2020 and December 31. 2020 to either: build a new home as a principal place of residence, where the property value does not exceed $750,000; or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000 and where the value of your existing property does not exceed $1.5 million.
- Renovations cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).
- Construction must start within three months of the contract date.
We wish you the best in your new home owner endeavours!