Taking yourself out of the “rent trap” is a liberating and rewarding experience. However, how do you transition from renter to first home buyer? Luckily at the new and idyllic community of Accolade at Rockbank, there are avenues for you to get into your first home sooner; you don’t need to have a trust fund or make bags of money to get there. Here are some tips and tricks to help you transition from renter to first home buyer.
Getting an overview of your finances
Finances are like sport – you can’t strive for a goal unless you keep score. You should get an overview of your finances before you take the plunge into applying for mortgages, researching prices, and doing the first bit of legwork. You should know what your credit score is, how much money is coming in and out each month and whether your financial position will strengthen as time goes on. Speak to a financial advisor or accountant to get a clear perspective.
Saving money for a deposit and budgeting
Now that you have a handle on your finances, the priority is saving money for your first deposit. The aim is to save up 20% of the total. You can purchase a home with a lower deposit (known as a lower Loan-to-Value Ratio) but you’ll have to pay for Lender’s Mortgage Insurance.
Cutting back on non-essentials means you’ll have more in the bank each week to put towards a deposit. Sticking to a budget – which a financial advisor or accountant can help you create – can also help you reach your goal quicker.
Take advantage of grants
As a first home buyer, you will be able to take advantage of the First Home Owner’s Grant, which gives new home buyers up to $10,000 to put towards the purchase of their first home. The Victorian State Revenue office also has other concessions and grants available for buyers; make sure you take an in-depth look to see what you are eligible for, such as stamp duty concessions. [https://www.sro.vic.gov.au/first-home-owner]
Look for exclusive deals at Accolade
Resi Ventures, developers of Accolade at Rockbank is offering renters the opportunity to break free from the rent trap with low deposit house and land packages exclusive to first home buyers. A panel of financial planners will help with financial coaching and savings plans to help you secure your first home. For more information, call Paige at Accolade on 1300 268 629.
The change of mindset and responsibilities
As you transition from renter to buyer, you’ll have more freedom to make changes to your home. Want to nail in a picture hanger? You won’t need permission from the landlord! However, with more power comes more responsibility. You’ll have to take care of house and contents insurance; gain council permits if you want to renovate; ensure your home is maintained, and pay your water service and rates bills. It’s a small shift in one’s mindset but, but homeownership is worth the extra work.
To find out more about Accolade at Rockbank, visit our sales suite at 1220 Leakes Rd, Rockbank. We’re open seven days a week from 11am-5pm.
