With so much attention on the current election campaign and the prospect of higher interest rates, it’s easier for first-time buyers to decide to wait and see where the market is heading.
But that can be a mistake. Instead, you should focus on your own game and stick with your ambition to enter the property market as soon as you can.
As an experienced local agency, we’ve seen property prices and interest rates rise and fall.
If there’s one lesson to learn from buying and selling property, it’s this: focus on your own circumstances and pay only cursory attention to factors beyond your control. You’ll never do anything if you worry about the next headline or economic challenge spruiked by politicians.
A purchase should never be a short-term strategy. What happens next month or next year shouldn’t be your primary concern. Instead, double-down on the disciplines that get you on the property ladder.
Below, we’ve listed some ideas to reinforce your strategy or help enhance your financial firepower.
Self-Control
Delaying gratification is a fine art. You need to save money, but austerity never made anyone happy. Find a balance that delivers financial progress but doesn’t turn you into a hermit.
Cut out credit
Snip through your credit cards with a pair of scissors. Stop paying for the most basic items, like a t-shirt or pair of jeans, on credit.
Debit deal
Replace your credit card with a debit card, which is front-loaded with your money. That way, you’re not borrowing someone else’s money at an exorbitant interest rate to make a purchase.
Job consistency
When you apply for a loan, your lender will want to know you’re in regular employment. So, avoid job-hopping at least three months before making an application.
Delete debt
All your outgoings will count against you when a lender calculates the size of mortgage you can afford. If you have a car loan or borrowed $10,000 for a big European trip, pay off those debts first.
Pay attention
Forming a lifetime habit of knowing where your money goes will save you thousands of dollars over many years. And if you have ambitions to build personal wealth with a property portfolio, as many people do, this is one of the most important tips you’ll ever get. So watch those online subscriptions. They can really start to add up.