Owning a home comes with a lot of responsibilities and definitely an increase in expenses. First time home buyers realise this and know that there probably several things that they do and enjoy now that they are going to have to give up. The trade off is worth it to many of them with the knowledge that their investment in their new home is a wise one.
An actual survey was done in respect to how new first time home owners in Australia felt about giving up some of their other activities that came with a price, and about 42% indicated they were willing. This evolved around giving up things like going out to restaurants for dinner, or a night out of drinking or even buying lunch instead of packing one. Some were even willing to give up their pay TV in return for becoming a home owner.
Amongst the group surveyed about half of them felt that a regular savings plan was the best strategy and one third felt that budget setting and adherence to it was the best route to go.
Australia is known for its high living expenses and this can make it difficult for potential home owners to save. On an average it takes the majority about a year to save for a deposit and a good number took two years to save up for their home purchase down payment. The down payment amount came out to be anywhere between 5% to 9% to allow them to make their offer.
All of these factors are indicators that home buyers are being maxed to their limits, and there were even some that had to wait for five years before they had accumulated enough for a down payment.
For the 1970’s home buyers it was indicated that they had purchased their first home before turning 30, but those in bought in the 1980 the majority it seems made their purchase by the time they had reached the age of 25.
Potential new home owners not only have to be disciplined in their savings, but have to look for opportunities to assist them with their deposit. Some qualify for a first home buyer’s grant which can go a long way in helping them reach their purchase goals. Even with the grants it doesn’t relieve the burden of having to save in order to come up with the down payment.
It doesn’t means that the financial burden lessens once the down payment has been met and they become new home owners. There is now the mortgage that has to be dealt with as well as the routine household expenses. All of this dictates the need for ongoing budget, and this is even after taking advantage of opportunities like grants and discounts on duty stamps.