3 Things That Stop First Home Buyers Getting Into The Market
Can you believe it takes the average first home buyer up to 5 years to save a deposit for their first home?
IF YOU’RE LIVING (AND BUYING PROPERTY) IN THIS DAY AND AGE, THEN YES, I BET YOU CAN BELIEVE IT.
And in our modern world of instant gratification, entitlement and give it to me now mentality, it’s no wonder young people struggle to get into their own home. We’re too pre-occupied spending our savings trying to keep up with the Kardashians!
Gone are the days of the government’s first home buyer’s grant covering the majority, if not all of the deposit and gone are the days of lenders who will loan you the remainder without stinging you a whopper in lender’s mortgage insurance.
YEP, THESE DAYS IT’S TOUGH IF YOU’RE ENTERING THE PROPERTY MARKET FOR THE FIRST TIME.
Competing with foreign buyers, cashed up mum and dad investors and high net worth individuals looking to expand their property holdings across the country, who wouldn’t be pissed that the government has let it come to this?!
BUT HANG ON, ARE WE REALLY GOING TO PLACE THE BLAME GAME ON THE GOVERNMENT?
Now if you know anything about me, I’m not one for sitting back and whinging about how hard a situation might be. I accept it for what it is, take a teaspoon of cement and just get on with things. Fixing it, making it work, you get my drift.
IF I WANT SOMETHING, I GO FOR IT, AND IF I HAVE TO, I’LL MOVE HEAVEN AND EARTH TO MAKE IT WORK. THIS IS WHY I’M TIRED OF THE COMPLAINING.
All the whinging that’s going on about property prices becoming too far out of reach for the average young Australian is growing tiresome.
Sure, I get it, and I bet you’re thinking, well Wendy, back when YOU were buying property, I bet market conditions weren’t nearly as tough as they are now.
And yes, you’d be right. The average house price back in my buying era was not even $200,000.
NOW, A HOUSE IN BRISBANE WILL COST YOU ON AVERAGE MORE THAN $600,000 AND SYDNEY, WELL, DO I EVEN GO THERE?
You see, I was that first home buyer who used my first home owner’s grant to pay for the majority of my deposit on my $85,000 first home.
Stamp duty wasn’t nearly as high as it is today and lenders allowed you to jump through a lot less hoops pre- GFC so the remainder was made up of a couple of thousand from my dad, a lender who wanted to play ball, and the rest from a term deposit I had set up some 2 years earlier.
FOR ME, THE WAIT WAS AROUND 2 YEARS.
But with that said, first home buyers need to get real about the market we’re in today. Sure you can complain about it, but that’s not going to get you into your new home. You’ve just got to drop the Poor Me mentality.
HERE’S THE SOLUTION.
Rather than rattle off the standard tips for saving that you probably already know and have heard a million times, like stop drinking your cappuccino every morning and put that $4 toward your house deposit, I’m going to hit you with some tougher tips.
Ideas that shockingly might stop you in your tracks, and even make you despise me for bringing them up because the cold hard truth of the matter might just rock your perfect little Gen Y world.
HERE WE GO. 3 THINGS YOU CAN IMPLEMENT NOW TO GET YOU INTO YOUR FIRST HOME.
1. LOWER YOUR EXPECTATIONS.
That’s right, this is your FIRST home, not your forever home. Very few people in this world step straight into their dream home straight off the cuff. Unless you’re Justin Bieber or the son or daughter of a mega mogul, it’s just not going to happen like that.
The number of times I see first home buyers complaining because they can’t buy their 4 bedroom, 2 bathroom inner city pad is unbelievable.
Most first home buyers are stretching the budget as it is, so putting even more pressure on yourself to have everything straight up is often the cause for disappointment, missing out to buyers with more money to throw at the purchase, and ultimately, staying out of the market longer.
If you can't bear the thought of not having all the bells and whistles first time around, think of this purchase as a stepping stone to building a property portfolio. Maybe this property will become a great investment one day. One in which you will leverage to buy your forever home.
2. SCALE BACK YOUR CURRENT LIFESTYLE.
Ok so I get that you’re starting to earn good money now that you’ve been in your corporate role for 3 years +, but that doesn’t mean the spending goes up.
Sure, if you want to stay on the rent wheel forever (or worse, at mum and dad's place) and blow your cash on meaningless “stuff”, then hey, it’s your choice. But don’t whinge to your friends on Facebook about how it’s too hard to get into the property market.
Accept the situation, and just start doing what it takes to get yourself into a position where you CAN buy.
If this means, cutting back on the weekends away, the new shoes, the boozy Saturday nights with the boys, heck, take public transport if you have to! It won’t kill you, and it won’t be forever.
Make the sacrifice now and one day you’ll look back and thank me for giving such ludicrous advice.
3. ASK FOR HELP. HECK, GET HELP.
Everyday there’s a new property expert.
The friend who bought their first home last week, the guy on Facebook claiming he’s worked out a “system” for making people rich from property and the local Buyer’s Agent who’s offering free advice on their website (that’s me!).
Now not all of these so called Experts will be right for you but ultimately, going it alone these days as a first home buyer, especially when you hadn’t a clue how to navigate the property market correctly will probably land you in some sort of strife.
Be it financial, emotional or worse, don’t be too proud to admit you’re new to this. Seek to get the RIGHT advice from people you trust and if you have to, PAY FOR IT!
What’s a few hundred or thousand dollars INVESTED in educating yourself or getting professional help when you’re possibly spending over half a million!
THIS IS WHAT SMART PEOPLE DO.
So there you have it. Sure, you might be squirming in your seat right now thinking, I’m not CHANGING! And I’m certainly not going to PAY SOMEONE to help me.
THE CHOICE IS YOURS, BUT I’LL LEAVE YOU WITH THIS.
Last week, I celebrated with some very dear clients of mine.
After more than twelve months in the market, they finally settled on their new home. It was an epic journey, and whilst sipping the champagne they had saved for this very special occasion, I happened to ask, if you could turn back the clock twelve months and had done things different, what would you have changed?
TO THAT QUESTION, THEY UNANIMOUSLY REPLIED, WE WOULD HAVE HIRED YOU SOONER.
If you're stuck and need my help or just want to enquire about HOW I can help you, click this LINK.