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Accounting & Finance

Ways to Finance your First Home

new vs existing home purchase

Getting on the property market for the first time can be a difficult task.  It is much more complicated than it used to be, making it harder for first time buyers than ever before.  Due to this, people may need to think of more inventive ways to finance their first home to make that first purchase.  We have put together some ideas as to how you can do this.

Figure out How Much you Need

The first thing that you need to do is make sure that you know how much money you need.  You may need to speak to a mortgage adviser about this to get some solid advice. Once you have the amount you need in clear view – it makes it a firm target for you to work towards. This makes it easier for you to plan how you are going to come up with that amount of money and to arrange saving for it or use other means.

Stay with Mum and Dad

You don’t need to necessarily ask your Mum and Dad for money, but you could ask if you could stay with them if you are currently renting to save some cash.  You could offer them a nominal amount that will pay for the additional utilities costs etc, but in the long run – it’s a great way for you to make some savings and get some money for your deposit on a house.  It doesn’t need to be a long-term thing, even a few months can do wonders. Most parents love having their children back to fuss over no matter what age you are.

Get a Passive Income

There are lots of jobs that you can do from home these days to earn a passive income as a 2nd job.  There are also creatives ways in which you can do this.  For example, lots of people take up things such as freelance photography, writing and more.  You could also open up your own business if you wanted to as something on the side. There are lots of people who do things like create bespoke hampers, bake cupcakes etc to make more cash on top of their primary job role.  These things can be fun too – so might not seem too much like a task.

Make Savings on Utilities

If you are renting, then utilities can be a major cost.  Often people will just stick with what their landlord originally has, but it’s a good idea for you to look into this yourself to see if there is any way to reduce this.  There are lots of utility comparison sites out there where you can view lots of different offers at the same time, giving you an idea of what is the best deal for you.  Some of the companies can even help you get out of contracts. You can put any money you save away in a separate bank account for your deposit and make sure that you don’t touch it.

Get a Loan

This can be a daunting prospect for some – and quite often a last resort, but it doesn’t need to be as scary as it sounds. With WA Housing Centre for example – they try and make the financing of a home as easy a process as possible for you.  They offer free consultations to give you some advice and can chat you through a wide range of finance solutions.  If you are approved they will let you know quickly, and their in-house home loan service is complimentary.

Credit Cards

Again, this is an option that can originally sound scary, but again it doesn’t need to be.  These days you can get 0% interest credit cards – which means you won’t accrue any interest after a certain period of time.  At which point, you will be more likely in a position to pay some of the money back – or else, there is the option for looking for a good balance transfer deal.  There are lots of these about, so you shouldn’t have any issue in getting one if you have a reasonable credit rating. The only thing we would say is that you need to make sure that you read the small print before using it.

If you are on the hunt for a house – and it is your first time when it comes to buying, we hope we have helped you find some inventive ways to get the cash you may need for a deposit.  The important thing that you always need to do is make sure that you plan ahead.