Buying your first home

Last year I was sent a press release from a mortgage broking company that said

“It is becomingly increasingly difficult for first home buyers to save the deposit they need in order to purchase a property worth hundreds of thousands of dollars”.

This is the sort of statement that makes me get a little hot under the collar.

The CEO of that company then went on to say – “it was time for the government to act and do something before home ownership stops being the great Australian dream and becomes the unattainable dream”.

That sentiment really makes me cranky….

Over the past 70+ years, since the end of the Second World War, home ownership has been hailed as the best way to keep Australia safe; by owning your own piece of the country.

Unfortunately in todays’ society where living for today has taken precedence; the purchase of a home has been put on the back burner for many people. But what’s wrong with planning for tomorrow and living for it?

Many times in the media we hear and read stories of people who would like to buy, but can’t afford the price.

Taking on the responsibility of home ownership is a personal decision. It has nothing to do with the government.

From all the people that I help in setting up a budget, I find that buying a property has nothing to do with ‘affording the price of a house’. The reason many people don’t buy a house is because they have different priorities and that’s where they spend their money.

For many of them, home ownership is close to the bottom of their priority list.

Of course, once the purchase of a house moves up their list, they then get serious and the first thing they do is get a budget organised.

Buying your own home has always been affordable for those who want one. Part of that process is to curb the desire to spend on other priorities, set goals accordingly and work towards the end result.

Of course, managing your money realistically has a lot to do with attaining the outcome. And being practical about where you can afford to buy your home will also make the goal easier.

I get a little surprised however, by the young folk of today that live with their parents for 25+ years. They have a good income yet pay no living costs. They also don’t have any money saved towards a deposit for a home. It makes me wonder what on earth they spend all their money on.

Sadly, for some people the only hope of owning a home will depend on an inheritance from the generosity of their parents.

I am curious to know if they’ll continue to live in the family home until that time.

Bottom line? If you really want to purchase your own home then the first thing to do when getting started is to organise a budget.

But you knew I was going to say that, didn’t you?

 

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

 

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