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Date Published : Friday, May 09, 2008
Saving money for a first home can be a tough task. With rising house prices pushing up minimum deposits, rising food and fuel prices cutting the dollars in your bank account and high rates on home loans, it can be a bit daunting.
However, according to one industry expert, putting money into a savings account as soon as possible is the best way to approach climbing on to the property ladder for the first time.
Hilross financial planner Lee Virgin told the Advertiser that it is important to get a grasp of personal finances before even considering buying a house.
He said: "Time is the only cure. The sooner young people set a goal and establish a plan, the better chance they have of achieving it.
"Investing without knowing what you want to achieve is a bit like driving a car without knowing where you want to end up."
A recent study by MyRate found that many Australians were "clueless" about what exactly home loans are and how much they would cost.
National Australia Bank state manager for South Australia Ann-Marie Chamberlain said that knowing the market - and knowing how to play it - is the best way to start their home hunt.
"When you buy a home, you need to make regular mortgage payments, so saving is a good way of getting into practice."
Furthermore, the publication claimed that eliminating any credit card debts, pricey personal loans and overdrafts should be considered if people are "serious" about their intentions of buying a home.
Compare savings accounts.
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