Buying a house – working out what you can afford So, you want to buy a house but have no idea what you can afford? In this article I will take you step by step through the exact process I use with all my clients to help them work out work out what they can truly afford to spend when buying a house. The great thing about this process is that my goal is not to give advice, but rather to let the numbers speak for themselves. Meet Colin and Kate: Colin and Kate are a young couple in their late 20’s; they have been renting for 5 years and over that time have managed to save $135,000. The owner of the house they have been living in is unfortunately moving back to Australia in 3 months’ time and they will have to move out. They came to me to help them work out if they could afford to buy their own home, and if so what could they afford to pay. So here is the process I took them through: Step # 1 – What do you really want your life to look like? The first step …
So your finances aren’t going quite as well as you had hoped, the bills are rolling in and despite earning an okay income you never seem to save us much as you would like. You have been thinking about it for a while, you have been putting it off but desperate times call for desperate measures (deep breath) – it is time to set up a household budget!
One of the great joys of being a budget coach is to journey with my clients as they save for and buy their first home. Buying your first home requires a huge commitment, it may well be the biggest purchase of your life so it is important that you take your time, do your homework and understand all the costs that are truly involved. A quick google search will quickly tell you the costs you must consider when buying a house, you know, the deposit, the real estate agents fees, the legal fees, stamp duty, the banks fees, connection fees, moving cost and so on. But what you will rarely find on this list is the importance of having a decent cash reserve. As a budget coach I strongly recommend that all of my clients include a cash reserve of$20,000 as one of the costs they need to consider when buying a house. Now I am fully aware that no one wants to hear this sort of advice, $20,000 is a huge amount of extra money to find and yes I know you are busting to get your first home but please here are three reasons you need to take …
As a financial advisor, clients are always thinking of ways to save money and pay off debt. One of the most common questions I get asked are, “Should we consider fixing the interest rates on our home loan?”
In the first blog in this series, Mortgage Advice for Young Couples Part 1: How Much Do We Need to Save For a House?, I provided an overview of how much you need to save before buying a house and outlined all the costs you need to consider. In this second blog, Mortgage Advice for Young Couples Part 2: How Much Can We Afford to Spend on a House?, I outlined the process I use with all my clients to help them identify how much they can afford to spend on a house.
One of the most fulfilling parts of being a financial coach is journeying with and helping people achieve financial goals that are important to them. One of the biggest, if not the biggest, financial goal you and I will face in our lifetime is to save for and purchase our first house. As a financial coach I also recognise that a big part of my responsibility to my clients is to give them the right advice, even if they don’t necessarily like what they hear.
One of the most fulfilling parts of being a financial coach is journeying with and helping people achieve financial goals that are important to them. One of the biggest, if not the biggest financial goal you and I will face in our lifetime, is to save for and purchase our first house.