Six EOFY Tips For First Home Buyers
With a new financial year providing a unique window of opportunity for motivated first home buyers, how can you make a property purchase before Christmas?
Making your first foray into the property market can be an expensive and confusing experience. As many members of this demographic already know, first home buyers are often inundated with advice from well meaning friends and family, and can quickly become overwhelmed at the sheer amount of information being thrown at them.
However, it’s almost universally agreed that as a first time home buyer, you need a clear plan of attack when it comes to forming a financial blueprint. Things like deposits don’t save themselves, and first home buyers need to have a clear vision for how they intend on purchasing their first abode.
While many first home buyers tend to associate January with the right month for creating new goals and evaluating existing ones, the reality is that the start of a new financial year is arguably the better choice.
What A New Financial Year Means For First Home Buyers
While it’s understandable that many first home buyers have opted to wait until the property market simmers down from its current peak, the general rule is that property is always going to increase in value – after all, people who purchased a home ten years ago are in a much better financial position now than they were back then.
As such, a new financial year provides the perfect opportunity for first home buyers to assess where they’re at when it comes to submitting an application for a home loan pre approval. To make the most of this time of year and even potentially get yourself into a property before Christmas, it’s worth getting familiar with the following insights.
Save Your Tax Return – Depending on your industry or sector, a new financial year can often mean a sudden influx of cash thanks to your tax return. Instead of booking a holiday or shelling out on a new wardrobe, first home buyers should use their tax refund wisely, and either use it for a deposit or pay off existing debts.
Review Your Expenses – The end of the financial year usually provides an opportunity to see where your outgoing expenses are. In addition, there’s often extra motivation for better record keeping, so that you know which receipts to keep for next year. For first home buyers, it’s also a good idea to evaluate where to cut back.
Expand Your Income – Given that Christmas is only six months away, use the new financial year to get motivated and work on generating more income. As a first time home buyer, it can often be easier to make more money than it is to cut back on expenses, so start exploring ideas for side hustles like upcycling furniture or offering services on platforms like Airtasker.
Consider The FHSS – If you weren’t a fan of how much tax you paid last financial year, the FHSS can be a way to pay less while still saving for a house deposit. The First Home Super Saver Scheme (FHSS) helps Australians boost their savings for a first home by allowing them to build a deposit inside superannuation, and essentially gives them a tax cut.
Explore Federal Schemes – For first home buyers eager to capitalise on the opportunity to break into the property market faster with as little as 5% or 2%, the good news is that applications for the Home Guarantee Scheme and Family Home Guarantee are now open in line with the new financial year.
Get A Financial Planner – Purchasing your first home can be an extremely daunting experience, but the good news is that with solid financial planning, it doesn’t have to be. Experts in this field help first home buyers to understand where their money goes, but can also provide guidance on saving up for a deposit and eventually purchase an investment home.
For those ready to purchase their first home, refinance their existing one, or even kick start their journey as a budding property investor, it should come as no surprise that six in ten Australians are now working with a mortgage broker for help in navigating the world of home loans – but where do you find one?
Partner With The Property Finance Experts
Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.
Relentless in their pursuit of gold star customer service, the team at Madd have now expanded their services to include end to end financial planning. Through Madd Life, the aim is to collaborate with clients to identify long term goals, and transform them into a road map.
If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd proudly work together as a collective to turn your goals into reality.