As real estate moguls and agents have iterated over the past decades, successfully purchasing a home will always be a matter of having enough money and adequate sources.
Whether it’s a transaction for a studio apartment or a dozen-room mansion, the need to show as much income and financial support as possible will always make itself known in one way or another. At this point, purchasing a home would certainly be a luxury for those who have deep pockets or multiple income streams, but this doesn’t mean that it’s impossible to buy one on a single income.
Tips for purchasing a home on a single income
Although it isn’t necessarily unheard of, purchasing a home on a single income is indeed a difficult endeavour in itself. However, it isn’t the “impossible” feat that most buyers make it out to be.
For many years, the whole idea of purchasing a home has been ruled by the thought of “two is better than one” because the cost of buying a property lends itself better when approached with more financial legroom. The problem with this train of thought is that it deters people from saving up for a house deposit in a sense where they see the situation of having a single income stream as an obstacle.
If you want to save up for a house and purchase a home on a single income, then you’ll need to have a lot more discipline and determination to make everything work. Beyond the key ingredients mentioned above, there are also a few key tips that will prove to be especially helpful during the saving and buying processes:
Tip #1: Start with realistic expectations
The one thing anyone aspiring to purchase a home with a single income stream should practice from the start is sticking with realistic expectations.
Generally, failing to have realistic expectations is one of the biggest dream-killers because it causes people to spend much more time on survival mode that it’s no longer practical. Considering that you have less income overall and buying power, it’s important to set your sights on saving for a deposit on a home with a value that will allow you to afford repayments while living comfortably!
Tip #2: Get in touch with an expert that can help you out
Striving to afford a home on a single income can be tricky because of the various factors that you’ll need to figure out to ensure greater chances of success—but this is where an expert can help.
Compared to taking on the whole process alone without any experience, working with a professional will help you approach the whole home-buying journey optimally. Through the help of an expert like FinanceCorp’s finance managers, for instance, you’ll have guidance on everything from cost allocations to home choices!
Tip #3: Start making meaningful yet manageable sacrifices early on
If you want to have an easier time purchasing a home on a single income stream, you must start creating enough space for yourself financially to have an easier time with payments.
Given that the average cost of a single-income-suitable Australian home is pegged at the $400,000 range, it’s important that you save as much money as possible from the beginning. By cutting expenses that you can live without, sacrificing a few costly habits, and opting for cheaper alternatives in the meantime, you’ll get to prepare yourself well enough for the best results!
Purchasing a home on a single income stream—as difficult as it may seem—is an outcome that can be achieved by practising simple yet effective methods and approaches from beginning to end. Through the three key tips mentioned above, you’ll have a much easier time getting your finances in order so that you can fast-track your way to homeownership ASAP!
Are you looking to take out a home loan in Perth, WA, but need the help of a financial advisor to make sure that you’re making the right decisions? Our finance managers at FinanceCorp are fully qualified, trained and experienced mortgage professionals who live and breathe finance. Get in touch with us today to see how we can help!