It’s a question asked by many people in their 20’s. There’s a preconceived idea that once you’ve committed to a mortgage you’ve set yourself up for a mundane and restricted life, deprived of the joys of travel. But does that always have to be the case?
Having a comprehensive understanding of the finance industry, I know how important it is to get your foot in the door early when it comes to property ownership. I also know how important it is to not feel as though you’re overwhelmed by a financial burden so young in life.
For me, to travel is to live. So let me tell you how you can get into your first home without sacrificing the joys of seeing the world.
I’ve put together a list of things you can do to be able to own your own home while simultaneously being able to go on that trip you’ve been dreaming of.
- Pursue a home you can actually afford.
I know it can be tempting to find a new luxurious apartment in South Yarra, and maybe you have the deposit to afford it; but if you’ll have to scrape every last dollar of your pay check just to have it is it really worth it? Finding a home that will allow you to continuously put money aside for your trip can be extremely worthwhile.
- Travel smart.
I don’t just mean be conscious of how much you’re spending while you’re away, but rather identify areas where the local currency will help you get more out of your Australian dollar. America is a great place to visit, but once you factor in the exchange rate and compulsory tipping a trip to the USA can be extremely expensive. Consider countries like Thailand, Indonesia, Sri Lanka, or Vietnam. If you prefer to see Europe then countries like Georgia, Croatia or Poland might be great options, particularly if you avoid the tourist traps.
- Put your home on AirBnb.
Once you have secured your home, you can help pay your mortgage repayments by posting your house on airbnb while you’re away. Having someone help you pay your repayments while you’re traveling can make it a lot easier on you.
- Consider taking advantage of the first home buyers grant.
If you are looking for a property valued at or below $750,000 you will be eligible for a First Home Owners Grant (FHOG) of $10,000 or 20,000 if the property resides in regional Victoria. If the property is valued under $600,000 you may also be eligible to pay no stamp duty. Having an understanding of how to take advantage of the FHOG can be tremendously beneficial for you in terms of getting you into your first home. There are a lot more factors to consider in regards to the FHOG; this is an area we specialise in so if you have any interest in finding out more information about it please contact me and I will be happy to answer any questions you might have.
Contrary to popular belief, with careful planning and thoughtful consideration it is not an unattainable fantasy to travel while you’re young AND purchase your own home. With a strategic plan, modest spending habits and realistic expectations of both your destination of choice as well as your desired home and its location, you do not need to sacrifice one for the other.
So bon-voyage and welcome home.