Buying a home is a monumental achievement, but it requires more than just finding the perfect property. Cultivating certain habits can significantly enhance your homebuying journey and set you up for success. Whether you’re a first-home buyer or looking to invest in more real estate, these five habits can make a world of difference:

1. Financial Discipline: Budgeting, Tracking Expenses, and Savings
A strong foundation begins with financial discipline. Create a budget to manage your expenses and allocate funds for savings. Regularly tracking your spending will reveal areas for potential cutbacks, redirecting those funds toward your home fund. Cultivating the habit of consistent saving brings you closer to getting that deposit for your home.

2. Reducing Debt: Staying on Top of Repayments
A healthy debt-to-income ratio is crucial when seeking a mortgage. Make it a habit to manage your existing debts diligently. Paying bills on time and reducing high-interest debts can improve your credit score and increase your borrowing capacity, setting you on a smoother path to homeownership.

3. Setting Long-Term and Short-Term Goals
Buying a home is a multifaceted endeavour that requires clear goals. Establish both short-term and long-term objectives. Short-term goals can include paying off small debts, having monthly savings goals, and reducing unnecessary spending. Long-term goals may involve finding your dream home and location, negotiating the best deal, and securing a favourable interest rate.

4. Creating an Emergency Fund
Unexpected expenses can arise during the homebuying process and beyond. Establish the habit of building and maintaining an emergency fund. This safety net provides peace of mind, ensuring that unexpected financial challenges don’t derail your homeownership plans.

5. Maintaining a Steady Income
Lenders often look for stability in your income history. While changing jobs or pursuing career advancements is natural, maintaining a consistent income over time can improve your chances of mortgage approval. Cultivate this habit to present a favourable financial picture to lenders.

BONUS: Education About Homeownership
In addition to these habits, a commitment to ongoing education about homeownership is invaluable. Familiarise yourself with real estate market trends, mortgage options, and property-related responsibilities. Buying a property doesn’t necessarily mean you need to put up a 10-20% deposit for the mortgage. There are many financing options for deposits out there, including government grants (e.g. First Home Owner Grant), personal savings, vendor financing, shared equity programs, and zero deposit schemes. Have a quick read of our article on “5 Ways You Can Buy A Property” for a more in-depth dive into the finance options of buying a home.

In conclusion, these five habits, along with understanding the several pathways to a deposit, can be the driving force behind buying your property.

If you are looking for little to no deposit options, R2B Group specialises in providing deposit financing options for Australians wanting to get into a property. Using a vertically integrated structure, R2B Group is able to take care of all the steps of the homebuying process, from financing, sourcing, building, and settlement.

Contact the team today to get started on your homeownership journey!

Phil Leahy
CEO of R2B Group

Disclaimer: This article is for educational purposes only and not professional financial advice. Please seek personal advice before making any financial decisions. The author is not responsible for any losses or damages resulting from reliance on the information provided.