Tips To Take You From Renting To Buying

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Tips To Take You From Renting To Buying

We’ve all been imagining our dream homes since we were kids. For some people, it’s a big house on some property in the country. For others, it’s a spacious apartment overlooking Bondi Beach. It doesn’t matter what it is if you can’t see yourself financially achieving it. How do you manage to pay rent every month and save up for a down payment?

We can’t give you a personalised answer, but we do have some tips.

Start the Journey

Step 1. Make a Budget

With your partner (or yourself) sit down and look at your current spending. Where could you cut back? Are there a few coffee charges a week that could add up to modest but helpful savings? Could you start buying store brand instead of a name brand? What about eating out? Cutting back on a few beers or glasses wine? There’s always something you can do!

Step 2. Get A Mortgage-Only Savings Account

Go into a bank and open up a free savings account, then link it to your direct deposit. Having different accounts for different savings reasons will keep you more organised and discourage you from spending future home money on other things.

Step 3. Be Realistic

Your first home isn’t going to be the one of your dreams, unless you’re willing to rent until you have the money for it. This is where the term “starter home” came from. If you don’t mind apartment living, then definitely save up for the bigger house. Do what you feel comfortable doing.

If you need to move out of a landlord-situation, then be ready to compromise on a few things. You may not get the house in your dream location, but is a 10 minute-longer drive really worth living a few more years paying someone else’ mortgage? Be honest with yourself about what you’re willing to compromise on.

You can always fix things up and neighbourhoods grow and change. Your first house doesn’t have to be forever.

Step 4. Consult an Alchemy Finance Broker

If you choose to buy a starter house, talk to your mortgage broker about your long term goals. They can give you industry-insights on eventually getting into your dream home. Only take out a home loan that you can afford, so you can save up for that future house.

Keep At It

We’re not saying getting into your first house won’t be hard, but it’s definitely not impossible. It will take hard work, patience, and maybe even a second job. But when you’re sipping tea on your open porch that wraps all the way around the house, it will be worth it.

Our Panel Of Lenders

At Alchemy Lifestyle Group, we have a wide range of specialist lenders that can help you achieve your financial goals.