June 25, 2011
The nation’s top finance experts share their tips on how you can save money for your first home deposit, avoid paying too much for a property and remain realistic about what having a mortgage really means.
Allison Tait, a ninemsn finance writer, suggests keeping a diary for two weeks and writing down every single purchase you make to give you a clearer perspective on where you can cut back. She also advises shopping online to save money and investigating whether you are paying too much for your internet, mobile and home phone.
David Koch of Sunrise fame says that if you want to avoid mortgage stress down the track, it’s a good idea to make extra payments when you can. This will provide a buffer for when times are tight and keep the wolves, i.e. the bank, from the door. If you find yourself unemployed or a whopping great bill arrives in the mail, this will help stop you falling behind.
The Today show’s Ross Greenwood says the key to saving money on the purchase price of a property is to find out why the vendor is selling. If they’re in financial hardship or going through a divorce, he says, “You’re on a winner.”
Yellow Brick Road CEO Mark Bouris warns potential first homebuyers not to get caught up in buying a home without truly understanding the ramifications and obligations of this 25-year commitment. “It’s not just about having the bucks,” he tells his customers. “It’s about developing the behaviours and maturity to spend less than you earn.”
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