With banks looking even more closely at your personal spending before they approve your mortgage, my HOT TIP this month is to find ways to reduce your spending.
It may sound boring, painful and unnecessary, but TRUST ME!
You will thank me in the long run.
First home buyers are very active in the market right now, and its also often a time in their life that a whole lot of other things going on - weddings, babies, never-to-be-better social life…! So if you can reduce your spending habits (and make it stick), the banks and lenders I present your case to will favour you above all those other millennials out there.
Don’t get me wrong, my job is to get the best possible outcome for you regardless of what you income and spending is - low or high - and if you’re a baby boomer or xennial. However, reducing your risk in the bank’s eyes is always going to get you more options and take you further to securing the home you want.
You’ve probably heard of minimalism...
(If not you REALLY need me as you must live under a rock ;)
I want to give you my take on how it can work for you to streamline your spending and get you in the strongest position to buy your first home.
Leo Babauta wrote “The Simple Guide to a Minimalist Life” and in it he outlines the 5 keys to minimalism and living simply. I’ve got some thoughts on each of these and how it can apply to you getting that first home (or next investment property).
1. Omit needless things
Here’s where you can look at outgoings. Got any subscriptions you don’t need? Time to cancel Netflix + Lightbox + Neon and pull out the old DVD collection or read a few books? Are there ways to trim your spending on dining out, flat whites and holidays? Do friends need expensive gifts for birthday or wedding presents or are there different ways to celebrate such as helping then out with weeding an overgrown spring garden? Acts of service can be free. It’s ok to have a season of cutting back and if your friends and family know your desire to get home they are likely to support you and not cut you out if you stop shouting Friday beers for awhile.
2. Identify the essential
Here I’m guessing the essential is owning your own home. Once you decide that, everything else becomes easy.
3. Make everything count
This is a life principle but it’s also about what you put into your life. If you are serious about buying a house then make your time count. Go to open homes, talk to people, get advice from experts (that’s what we’re here for!). Use this time, make it count and you’ll be glad you did.
4. Fill your life with joy
Joy is not happiness. You will be happy when you get that house. But you can find joy in the process and don’t let it become all-consuming or stressful. It’s a good time to buy. The market is stable and there are houses out there. So make sure you take a break once in a while too, especially if you see that the house hunt is taking a bit longer that you thought. And we are here to help along the way, no matter how short or long your journey is.
5. Edit. Edit.
Another great life principle. You will probably already know that first-home wishlist is one that gets a constant edit. This is good! You may find things you can compromise on and realise there are things you don’t have to as well. Keep refining what you’re after and let us work with you to secure you the financial arrangement that serves you best.
Whatever financial position you’re in, or age you are, talk to Hayden to get an independent overview and advice on your next steps.
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