Pay the rent as well as save? No worries!
While much of the media spin is all doom and gloom for housing affordability it seems wishful home buyers won’t let anything stand in their way of home ownership – even rent.
There’s no doubt housing affordability is a key issue for aspiring buyers, with rising house prices, rising interest rates and of course the high cost of renting making the property market a pretty tough nut to crack.
But prospective home buyers won’t be deterred. According to RAMS’ First Home Buyer Pulse Check almost nine in 10 aspiring home buyers are paying rent while they save for a deposit.
Considering rent can easily amount to around $1,000 per month in metropolitan areas, the fact that would-be home buyers are still working to save a deposit is impressive.
In fact, according to RAMS’ survey, one in five prospective home buyers is dedicating more than 20 per cent of their income towards their home loan savings, while one in 10 is committing as much as half of their income to their savings nest.
If you’re letting your rent stand in the way of your first property, don’t. Like the RAMS research suggests, home ownership is possible – even if it seems like you’ve got too many expenses already.
By putting a monthly budget together and working out where you can reduce costs you could build up a tidy deposit and speed up your property purchase.