Whether you are a first-time buyer or a savvy investor, 2023 is expected to bring lots of opportunities to the property market. The sooner you start thinking about setting some goals and how you can reach them, the sooner you can be at ease about your financial decisions for the year ahead.
Here are five steps you can take to understand your financial position and help you be in the best position to be ready to buy when an opportunity comes your way.
1. Check your spending to make sure you aren’t wasting money
Review your credit and debit card statements to see what is going out and ask yourself if you really needed each purchase.
There are simple things you can do to cut down on your spending. Do you need all the streaming platforms that you have? Can you go without take-away and cook at home instead?
Look at your needs versus your wants. Your needs are the things you need to live your everyday life, while your wants are the nice things you can live without, instead use that ‘spend’ to save.
2. Get a clear idea of your debt
Sit down and work out what exactly you owe, this will give you a better picture of all of the different debts you have and how much is needed to pay it all off.
Do you have debt with high interest rates? It’s a good idea to make paying off this type of debt a priority.
Can you consolidate loans to make the debt more manageable? That way you can combine all your debts – e.g. credit cards, personal loans, and car loans – into one loan. This will allow you to take control.
3. Get a financial check-up
Chat with our wealth team to make sure that you’re in the best possible position to invest. It’s an excellent opportunity to review your finances to keep you on track – why not make it an annual event to keep track of your progress?
An expert can work with you on your budget, and financial goals and guide you on adjustments needed to get you in the best position to positively invest in your future.
Financial check-ups, like annual medical check-ups, are so important and help you realign your financial goals, saving plans and any future investment opportunities.
4. Understand the mortgage options that are available to you
It can be overwhelming with so many mortgage types and providers on the market.
The best way is to talk to lenders about the pre-approval process. If it’s your second home, you may need to consider refinancing.
Refinancing often gets you a lower rate and can help you get your hands on some much-needed equity to pay things like home improvements, holidays or school fees.
A mortgage broker understands this process and can help you navigate myriad options.
5. Research the property market
Whether it’s your first home, upsizing, downsizing or looking to invest, spend time getting to know the property market, identifying your must haves or nice to haves, and understanding the type of existing property or home and land packages that work best for you.
Property can be less volatile than shares or other investments, you’ll earn income if the property is tenanted and if your property increases in value then you will benefit from a capital gain when you sell.
In addition, if you keep the property for more than 12 months, tax laws provide a 50 percent capital gains discount on long-term investments.
Visit our Wealth and Property pages or contact us directly at 1300 526 336 if you need help understanding your financial position on the property ladder. Contact them today to put yourself in the best position for success.