Saving up for your first home? Good on you! Here’s some advice from Henry in this real estate vlog on managing your own expectations and how to save for your deposit.
Hi, I’m Henry for Remax. We’re here to talk about first home buyers. I was a first home buyer once and you just got to remember there’s a lot of things going on in the media about helping first home buyers. It’s really hard to afford, blah, blah, blah, blah, blah. You have to understand that more than likely your first home won’t be your last home. You have to start somewhere. The key is to start somewhere. Unless you’re making a crap load of money or you’ve got really rich parents, you can’t buy a five million dollar mansion. So apart from that you could really think about hey, you know what? This is going to be my first home. I will start small and then later on when I get promoted or make more money, then I’ll buy a larger home. So the key is I guess to start small. At least you have to start somewhere. Start small. It’s all about managing your expectations. It’s the same thing as you know what? I’m a first car buyer but my first car, I want a Rolls Royce. Well good luck to you. Unless you’re making a crap load of money, good luck. You got to start somewhere. So starting small. Deposit. Save for a deposit. Try to aim for a 20% deposit. Now at this point in time, most banks will charge your lender’s mortgage insurance if you don’t have 20% deposit. If you don’t you can have five or ten percent, you’ll have to pay LMI which is lender’s mortgage insurance. The more deposit you have, the better. Try to have a good track record of savings. So when you’ve decided I want to buy a house, try to forecast in advance. So let’s say 12 months or 24 months in advance you have a whole bunch of savings. Now these days, the banks, when you borrow they go through your statements and they look at what you spend. So you’ve got to really be careful with what you spend as well. And also your tax returns. Make sure you file your tax returns because when the banks lend money they’ll look at your tax returns. So make sure you have enough taxable income on your tax returns. So your savings, tax returns, try to have as much deposit as possible and just remember the biggest key is that you got to start somewhere. You got to start small. So it may not be your last home but at least you got to start somewhere.