We love property in Australia―it’s part of the Australian dream1. About 70% of us live in our own homes. But owning property can seem an impossible dream for first homebuyers with research revealing they hold less than 12% of all home loans2.
Don’t lose heart. Our tips for home ownership may help.
- Build your plan - The earlier you start planning, researching and saving, the better off you’ll be.
- Work out what’s most important for you in a property - Shortlist suburbs and properties that meet your needs.
- Can you take advantage of potentially undervalued suburbs? You may be better off with a more affordable house in a different location that may prove a good investment over time.
- Work out costs - Make sure you understand the upfront costs of buying property—for example, stamp duty and lenders mortgage insurance (if it applies). Consider the ongoing costs like loan-interest charges and any relevant strata fees. Our cost of home loan calculator can provide information about other costs.
- Gather your deposit - When it comes to saving, work out your income and how much you can save while meeting day-to-day needs—use our budget planner. Then how long it will take you to save your deposit—consider AMP’s savings accounts for competitive interest and ready access to your money.
- Work out how much you’re likely to borrow and how you’ll repay the home loan - Use our loan repayments calculator.
- Some states may still provide first home buyer grants - Contact your state revenue office.
- Choose your lender - Visit several lenders and when you’ve found the right one, arrange financial pre-approval. With a pre-approved home loan from AMP you can benefit from competitive interest rates and terms, and be ready to bid or buy when you find the right property.
- Find out more at Q& where we cover all things property.
- Consider seeking financial advice so you can make the most of your money.
1 Housing tenure data in the Census 2011.
2 Australian Bureau of Statistics, August 2014, http://www.realestate.com.au/blog/first-home-buyers/.
It’s back to the past to control the property cycle