When you think Millennials, you don’t necessarily think money saving superstars. But we are here to turn that thinkin’ on its head and help all you first-home-buyers save for your first home.
See, we’re millennials too. And regrettably, we’ve gained a bad rap when it comes to saving. Some say we’re entitled (what?!) and privileged (double, what?!) and think life is all sunshine and smashed avos (what?! Ok, there could be some truth in this one). But we’re ok with this. Crumbed fetta is the bomb, after pay is our god, and $5 coffees make the 9-5 days and un-paid overtime manageable. Just.
And, if we’re being honest, most of these statements are being made by self-made billionaires (Tim Gurner & Bernard Salt) who swear by the 15-hour work days 24/7? Yep, we think their views on saving might be a little unrealistic and outdated. After all, aren’t we also here to enjoy life? Good, glad we’re on the same page.
Contrary to popular belief, Millennials are cautious investors. We probably didn’t have a choice; what with our entry into the workforce coinciding with the way-too-terrifying financial crisis, opportunities being few and far between, and wealth anything but guaranteed. Everything we’ve gotten we’ve had to fight for so really when you compare millennials to past generations (hello cruise loving Baby Boomers!) we are a frugal bunch that’s more than ready to invest in our first home. Yippee.
Work out your budget
So now to the nitty gritty. The first thing we suggest is to work out your budget. Don’t worry there’s no maths involved- well not much and we’ve done all the icky hard work for you with our loans calculator. Tada.
Myth 1: When buying your first home, you need a 20% deposit.
Home buyers rejoice, we can gladly debunk this myth and confirm its far from true. Lenders are now accepting lower down-payments. Much lower!
“At V Home Loans, we have an array of low deposit options starting at 2%” says V Home Loans finance guru Paul Bradley.
– Pheww it looks like you can purchase that dress and new home after all.
So far, we’ve determined the deposit needed to buy your first home. Now we get to move onto the whole ‘managing your finances’ part. Don’t stress, it’s not as scary as it sounds. And we’ll be with you every step of the way.
Manage your finance
Begin the process by opening a separate bank account (one you are not allowed to withdraw from- in other words, not just a regular savings account we all open with opportunism and hope, only to find we need to withdraw from it every few days. #guilty). We suggest setting up automatic transfers weekly to make the process a little easier and like totally stress-free.
Tackle those debts
Here’s what we already know: a good credit rating is essential when applying for a mortgage, so tackling these pesky buggers must be high on your priority list. Here’s how to do it:
- Pay off those credit cards and personal loans to increase your borrowing power.
- Make weekly transfers and shop around. NOTE: We don’t mean clothes shopping, although that’s fun too. We mean bank shopping- OK ok, we get it, it doesn’t quite have the same ring to it but still, it’s super important.
- Research which financial institution is providing the best interest rate and see if they allow for balance transfers (transferring the balance on your current credit card to another credit card with a lower interest rate).
Voila! Your finances are already starting to look a little less sad. 24 months no interest periods? Money incentives? It sounds too good to be true, but we can hand on heart promise you these are actually real things… Crazy right. And so so good.
Banish impulse buying
Did you see Megan Markle’s white knee-length dress she wore in Sydney last month? We thought it was so ridiculously elegant and it looks like the rest of the Australian population felt the same way ‘coz it sold out in seconds. Talk about royal fever! I can guarantee 95% of those purchases were based purely on good ‘ol impulsive behaviour. We live in an era where everything is so accessible, and with options like afterpay and zippay, perhaps too accessible. If we want exactly what that celeb on the Daily Mail is wearing it’ll be easy to find. BUT remember your mission; SAVE not SLAY!
Limit the time you spend online shopping by allocating a window of 1 hour every month rather than 1 hour every evening. When you have the desire to buy something after trying it on, go home have a wine and think about whether you really, reeeeally need that new Zara midi skirt. If after two weeks you’re still thinking about that item, then go for it (and tell us girl – we might want to snap it up too if it’s so fab) but more likely than not, you will have moved onto the next trending must-have.
Kickstart your savings
Have a gorgeous trench you just don’t wear anymore? A million chairs because of a chair addiction? No? Just me then. Think about the value of these items and whether you are truly using them to their fullest potential. Often, the answer is no and yet so many of us have draws that overflow with purchases we’ve not even removed the tags from or in my case 6 chairs in one room. Time for a wardrobe/ furniture detox. The latest trend to hit interiors and fashion is minimalism and we when we say minimalism we mean MINIMALISM. Sell off those unwanted items, declutter and make some dough at the same time- that sounds pretty ideal. And trending.
Go on, Get Saving, Your First Home Awaits!
Now that you’re all savvy, non-splurging savers check out our loans calculator and array of homes that meet your budget. As a first home buyer, this can all sound overwhelming, but we are here to tell you that your dream is in sight and our partners at V Homeloans can help you through the process and get you started today. You can get more information on our dedicated First Home Buyer page, or you can give us a call on (08) 9241 1300.