The Benefits and Importance of Owning Your First Home​

Owning your first home is a significant milestone in life, symbolising stability, achievement, and a solid foundation for your future. For many young Australians, entering the property market represents not only a place to live but also a wise financial investment. The benefits of homeownership include:

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• Building Equity: Unlike renting, owning a home allows you to build equity over time, which can be a valuable asset for future financial security.

• Stability and Control: Homeownership provides a sense of stability and control over your living environment, free from the uncertainties of rental agreements and landlord policies.

• Tax Benefits: There are a number of tax concessions available to first home buyers when purchasing and selling their family home

• Centrelink Benefits: There are also possible Centrelink benefits of owning your own home rather than renting

• Investment Potential: Property values tend to appreciate over time, offering the potential for a profitable investment return.

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Key Requirements to Enter the Property Market

Entering the property market for the first time requires careful planning and preparation. Here are the key requirements to consider:

• Saving for a Deposit: One of the biggest hurdles is saving enough for a home deposit, typically 5-20% of the property's purchase price.

• Managing Debts: Reducing or eliminating existing debts can improve your borrowing capacity and overall financial health.

• Improving Credit Score: A good credit score is crucial for securing a favourable mortgage rate. Paying bills on time and reducing credit card balances can help improve your score.

• Assessing Affordability: It's essential to understand what you can afford based on your income, expenses, and lifestyle. This includes not just the purchase price but also ongoing costs like maintenance, taxes, and insurance.

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How Steering Wealth Can Help You Purchase Your First Home

At Steering Wealth, we specialise in assisting young Australians in their 20s and 30s to navigate the complexities of purchasing their first home. Our comprehensive approach includes:

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• Debt Management: We help you devise a strategy to pay off existing debts, making you more attractive to lenders and improving your overall financial situation.

• Savings Plans: We work with you to create a realistic savings plan for your home deposit and show projections of your savings

• Investment Plan: We can assist you in investing your home deposit in a way that maximises your returns and minimises the amount of tax that you pay

• Credit Score Improvement: We provide guidance on improving your credit score, including tips on managing credit responsibly and correcting any inaccuracies on your credit report.

• Affordability Analysis: We conduct a thorough analysis of your finances to determine what you can afford, ensuring you make a purchase that fits your budget and long-term goals.

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