The Ultimate 5-Step Guide To Owning Your Own Home

For many people who are not yet on the property ladder, becoming a homeowner is a major aspiration but for most people this is not something that is going to happen overnight. There can be a lot involved when it comes to owing your own home, which means that there is often a lot of planning to be done, financial and otherwise.

Homeownership can mean different things to different people in terms of what they want. You feel that the perfect option for you is to do something like look for land and create your own dream home or you may prefer to buy an existing property. Either way, putting a few simple measures into place could help to make your dream of homeownership into a reality far more easily.

Five important steps to aid homeownership

1. Plan in advance: Since homeownership does not tend to happen overnight, it is important to plan in advance. It could take a few years of planning for some people, as you also need to think about things such as saving an adequate deposit. Try and set yourself a realistic goal with regards to when you want to – or can afford to – purchase a home and then work towards that goal 

1. Budget effectively: Think about the costs involved in buying a home, such as your deposit, application and legal fees, other taxes and fees, and also money you might need to buy things for your new home such as furniture. You then need to work out how much you can afford to save each month, which will give you an idea of how long you will need to wait before you can make your dream into a reality.

1. Keep your credit clean: One of the vital things you need to do if you want to be able to get an affordable mortgage in the future is ensure you keep your credit clean – and we mean squeaky clean. A low credit score and tarnished credit history can really hamper your chances of getting a mortgage and therefore buying a home. Paying bills and debts on time, keeping your other borrowing under control, and managing your finances responsibly will help to ensure that your credit looks good when it is time to apply for a mortgage.

1. Control your debt: Try and keep your borrowing down as much as possible, as the more debt you are in when you apply for a mortgage the lower your borrowing power will be, as lenders will have to consider your other outstanding debts when deciding how much they can lend to you. While you only need around 20% for a deposit, try to save more than this – you’ll have less to repay in interest in the long run.

1. Do your research: As the time draws close to you being able to buy a home, do your research in terms of house prices and fluctuations, mortgage rates and types, and what your options are (e.g. buying a ready built home, buying off plan, buying at auction, or buying land. This will ensure that you are prepared when the time comes and you know what you want.

Tim Abbey is a writer who is looking to buy land for sale in Horsley. He has lived in the Illawarra area for several years and would love to build his own property in this area.

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