Congratulations; you’re Gen Y! The generation where education is not free, health cover costs a bunch and everyone is telling you how unaffordable the housing market is. The Baby Boomers are keen to point the finger every time you eat smashed avocado, telling you that’s why you are locked out of the property market.
Below are just a few ways in which Gen Y (or anybody) can improve their finances and work towards owning their first home.
1. Have a plan
Set a goal and work towards it. Whether it be 12 months, five years or ten years, set a savings target for yourself. Otherwise you can pretty much guarantee you’ll stay in the same position.
2. Take advantage of grants and schemes
In Victoria, from 1 July 2017, stamp duty for first home buyers purchasing a home for less than $600,000 has been abolished. This is a full exemption. First home buyers purchasing a home with a value of $600,001-$750,000 will be entitled to a concessional rate of duty, calculated on a sliding scale.
If you are buying or building a new home, you may be eligible from the first home owners grant of $10,000 in metro areas and $20,000 in regional areas. Your new home must be valued at $750,000 or less and be the first sale of the property as a residential premises.
Further concessions in Victoria are:
- Off-the-plan concession – a duty concession for an off-the-plan property;
- Principal place of residence (PPR) concession – a duty concession for a property you buy and intend to live in that is valued up to $550,000;
- First home owner with family exemption/concession – a one-off duty exemption or concession for properties valued at $200,000 or less; and
- Young farmers exemption/concession – a one-off duty exemption/concession for young farmers buying their first farmland property.
3. Review your spending and debt with a fine-tooth comb
Don’t go giving up your avocado but it could be time to have a close look at where your money is actually going. Seeing how much you spend a week can be quite shocking.
Are you paying for a gym membership that you don’t use?
How much are those daily coffees costing you? One coffee a day can add up to over $1,000 a year.
Could you be using public transport more often to save on petrol?
Another important point would be paying off your debt if you have a credit card or personal loan.
4. Become an expert
Do your research. See how the weekly auctions go and watch for market trends.
5. Increase your earnings
Apps such as Uber, Deliveroo and Airbnb all empower you to earn extra money. Every little bit helps you achieve your goals.
6. Use shares to buy into the property market
A good way to grow your wealth in preparation of purchasing a property is to invest your cash in the stock market. Technology has made it easier to proactively invest and make informed trading decisions faster. Using shares to grow your wealth is another self-directive, empowering way to work towards your goals.
Contact us to discuss the right finance solution for you.
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