| Most young couples dream of owning their own | | | | and house repairs (plumbing, electrical, painting |
| home and having a nice environment in which to | | | | etc). |
| raise a family. Buying a house is often as much | | | | For example, you might be currently paying $300 |
| about emotion as it is about money. For that | | | | per week in rent, whereas once you own a house |
| reason, some couples make mistakes with their | | | | you will be paying $600 per week in mortgage |
| first home purchase. | | | | payments, rates and insurance. If your house is |
| For a start, it's easy to get emotionally attached | | | | truly affordable, you should therefore be able to |
| to a house that really is not affordable - it's a | | | | save $300 per week before you buy. Start |
| natural human tendency to want something that | | | | saving that money now towards the deposit on |
| is slightly out of reach. Emotional attachment can | | | | your house. The higher your deposit the lower |
| also mean you pay a higher price because you | | | | your repayments will be, giving you a bit more |
| are afraid of missing out. Impatience can lead to | | | | leeway to cover interest rate increases or a drop |
| another mistake, and that is not taking a long | | | | in income. |
| term view of how affordable the house is. How | | | | Your first home doesn't need to be a big family |
| will the mortgage be paid when there is only one | | | | home that is going to last you for the next |
| income coming in? How will repairs, maintenance | | | | twenty years. Being forced to sell because you |
| and upgrades be paid for? Will interest rate | | | | can't manage the mortgage may cost you a lot |
| increases be affordable? | | | | of money, so start with something small and |
| The starting point for buying a first home is to | | | | affordable and work your way up from there |
| establish some criteria for the kind of home that | | | | once your mortgage becomes more manageable. |
| will best suit your needs - for example the size of | | | | Some young couples start out by purchasing an |
| house, proximity to transport and schools, type | | | | investment property. It can be easier to find a |
| of construction etc. Have a look at some | | | | house that is affordable if you are not going to |
| properties that meet those criteria to get a feel | | | | live in it yourself, because you can then consider |
| for how much you will have to pay. | | | | buying in areas other than where you would |
| Talk to your bank or mortgage broker about how | | | | choose to live. Expenses such as interest, repairs |
| much deposit you will need, how much you will be | | | | and depreciation will also be tax deductible, making |
| able to borrow, and what your fortnightly | | | | the purchase much more affordable. Through |
| repayments will be. You will need to be in a strong | | | | most of your life, your home will probably be |
| financial position before you buy, because once | | | | your biggest asset and the choice you make with |
| you are committed to a large mortgage, it will be | | | | your first purchase will have a significant impact |
| difficult to save. Compare the cost of the rent | | | | on your future wealth. It's worth doing your |
| you are paying with the costs of owning a house. | | | | homework to avoid making a costly mistake. |
| These costs include mortgage payments, rates | | | | |