First time home buyers have a better footing
With investors vacating the property the market, first time home buyers are given the perfect opportunity to join with prices that becoming slightly affordable due to the cooling down of the property market. According to ABC news, first time home buyers are taking full advantage, accounting for 18% of all new loans. Although investor lending has fallen by 8% in the past year over the 11 of the past 12 months, first time home buyers are raking up the benefits of this vacuum to get loans that were up by 40% over the same period to secure loans for their homes.
Tip: Observing the property market constantly to find the best opportunity to invest in a home loan is essential. Shopping around and comparing a home loan will help you find the best deal for your needs.
The price to finance a home in each state differs
Home loans are a big deal to Australians, and we don’t play when it comes to finding the best deal that matches our financial needs. Research released by Finder on home loans showed that the total value of loans written in November 2017 was at the value of $24 billion. The average loan size was $388,900, with first time home buyers opting for the average home loan of $327,100. Depending on which state you are planning to buy your house at the prices will differ.
Tip: Knowing the price you must pay to secure your first home in any state or territory is important. This will help you find the right home loan to adequately finance your home needs without having to hurriedly look towards alternative methods to act as a patch up.
Find a discount where possible
Buying a house in Australia is expensive. Depending on where you are buying your house you could expect to pay anything between 28% – 35% of your income towards your mortgage. If you are a first time home buyer the financial burden could be eased by the First Home Owner Grant that will bring you one step closer to owning your home.
Tip: Research is your best friend when it comes to finding the best deals and discounts for your home.
Live within your means
Unfortunately, the mortgage debt continues to create a financial burden for many Australians. Despite the cash rate being held at 1.5%, mortgage prices are becoming unaffordable for many Australians. A study by IMF showed that household debt has risen to 100% of the GDP, resulting in people taking out loans that push them further into debt.
Tip: Always find a property that is within your means. Find adequate finance that will help you reach your goal of owning your property, rather than pushing you into debt. If you have to re-adjust your significantly in order to meet your home loan repayments, it’s time to find a new one that isn’t costly to maintain.