Updated: Feb 11
Are you a first home buyer looking to get your foot in the Australian property door right now?
Well, don’t be dissuaded by media reports vying for your attention through sensationalist headlines. Granted, the market is hot right now, and it can undoubtedly be a challenge, but that is where we are here to help. The fact of the matter is that the sooner you enter the market, the sooner you can stop paying rent and start paying your mortgage as opposed to someone else’s.
Filter the information with facts
First thing is first - there is plenty of information out there, and it can be overwhelming working through it all (not to mention listening to all the family and friends who probably want to chip in with their advice). However, this will be one of the single most significant expenses in your lifetime, so it is vital to seek out objective and correct information.
We regularly help first home buyers achieve their goals (something we love to help make happen!). From all our dealings, we believe these five top tips are relevant to the majority of our clients who are new to this form of wealth building. As such, we’d like to share them with you.
Set realistic budgets
By this, we’re effectively referring to two budgets: the one that indicates achievable parameters for your mortgage and the one that helps you maintain mortgage repayments thereafter.
Both of these must be realistic and within reach. What is the point in having a mortgage if it means you can’t have a life? And why try to buy Champagne when there is only money for beer? Give yourself stretch targets, sure, but understand your limits. You want this decision to make financial sense, not take every cent you have. Here at ActOn Wealth, we are highly skilled in helping you create and maintain both types of budgets.
Trust us - this is not an overwhelming process. On the contrary, it’s as easy as sitting down with your wealth wingman, talking through your lifestyle and goals, and then we assess your earnings minus your expenses. Believe it or not, we work to make this a pretty enjoyable process. Indeed, there is a lot to be said about understanding your budget flow and how it contributes (or dilutes) your ability to create wealth.
Widen your property search filter
In keeping with the previous theme, consider widening your search radius and perhaps even relaxing some of your criteria.
One suburb back can make a flagrant difference in property value. Besides, it’s rarely that big a sacrifice if most things are still a short tram ride, bike or walk away. Equally, consider your non-negotiable list of features. Are all of them genuinely mandatory, or can you afford some flex? Perhaps you don’t need to tick the whole list right away - you might add some elements as you go? For example, particular finishes you’ve had your eye on since starting this journey could be part of a cosmetic enhancement in a year or two’s time, when you’ve settled into mortgage repayments and have managed to even save a bit on the side.
Maybe you can entirely forego some elements for the sake of owning your own property? For example, the lack of built-in robes - cool ops shops often have great mobile wardrobes, and storage beds can hide an enormous volume of easy-to-reach clothes and accessories.
Take advantage of Government grants and concessions
Government offers, policies, criteria and processes for first home buyers can change fairly regularly.
It’s prudent to understand what is available, what you’re eligible for, and how to go about it for the best possible outcome. Again, your Acton Wealth team knows this area inside and out. We will immediately identify the total number of financial incentives available to you and set about obtaining them easily and in good time.
Only use a fully licenced mortgage broker
No matter what property you purchase, mortgages are very serious amounts of money to borrow.
For that reason, you want absolute assurance that your mortgage broker is fully licensed with the Australian Security Investments Commission, or ASIC. ASIC is Australia’s corporate, markets and financial services regulator that ensures practitioners act efficiently, honestly and fairly. Rest assured, ActOn Wealth’s mortgage brokers are fully licensed and compliant with ASIC.
Ask your mortgage broker about their commission and fee structure
Regardless of ASIC licensing, you are still well within your rights to enquire about your mortgage broker’s commission and fee structure.
In fact, we believe this is such an important (and sometimes abused) point that we’re making it one of our top five tips. Unless both are exceptionally low, then your broker should not be charging a commission and a fee. Indeed, ActOn Wealth charges you no fee whatsoever because we have a transparent commission policy in play. This is in agreement with lenders we are confident offer the most competitive and reasonable mortgages on the market. These lenders have created mortgage solutions that help our clients achieve a mortgage without sacrificing their lifestyle. Please ask us for more information, and we will be happy to provide it.
Contact us about your mortgage
Going to each of the banks and lenders one by one and doing your own research will be a frustrating, long and thankless journey. Moreover, it won’t find you a better deal. Why? Because to avoid liaising with huge numbers of clients, mortgage providers offer the most competitive deals to brokers like ActOn Wealth, who in turn pass the savings onto you.
We work in this space every single day and will instantly know the suitable options available to you. So why not come and meet us for a no-cost, no-commitment catch-up. From there, you can decide if we’re the right fit for you. Rest assured, we love nothing more than finding the best possible mortgage for our first home buyer clients. We know this can be a momentous step on the journey to wealth creation, and that’s exactly where we want to take you.