Buying a home can be a rather daunting endeavour.
Take it from me, the process of buying my first home was one that required an incredible amount of preparation and years of disciplined saving.
Often you feel like you are making progress only to find another roadblock that needs your attention. Namely, there are many costs associated with buying a home and most first time buyers are completely unaware, often forgetting to save money for the hidden costs leaving them short at the last minute.
For me, the major hidden costs were pest reports, stamp duty and what was a narrow miss – lenders mortgage insurance.
Understand the hidden costs of buying a home
To better prepare you for your first home purchase, the below infographic by MyBudget visually outlines some of the things you need to consider. So get saving, get informed and prepare your budget to factor in all upcoming costs.
It would be wise to note, that not only are the hidden costs above needing to be considered – but you should also look at some of the factors that impact how much money the bank will lend you. As you continue saving money, you need to be factoring in improvements to your financial position to ensure the bank will lend you the money you need.
To ensure you maximise the deposit you save, consider doing some small but effective tricks to boost your savings by tricking yourself into saving money.
Don’t believe that small changes can make a difference? Read about the small change resolution and how it can rapidly boost your savings. Also, I personally followed some of the tips above and managed to save $4,800 extra a year.