When is the right time to buy your first house? It is common to be compelled by peers and family into considering the right age to purchase your property. Some people are enthusiastic and ready enough to fulfil this great Australian dream while in their 20s. However, others may take their time – nice and slow – and buy a property after they reached their 30s. For many Aussies, this age means becoming more mature and responsible enough in dealing with their finances, decisions, and actions.
Here are some of the reasons why it is rational to purchase your first home in your 30s:
1. You Are Ready To Make Big Financial Commitments
When borrowers apply for a home loan, security is an essential factor that lenders consider. In addition, they want to see a stable employment history and a steady flow of income that will help pay for the mortgage. While it is never simple to get a job that you can see yourself doing for a long time, many of those in their 20s are at an early stage of their career.
However, in their 30s, people have already reached the point of gradually establishing their careers and securing a job. That put them at a more significant advantage when leaping into homeownership. Moreover, they are likely making more than they were in their 20s, making substantial investments like buying a property less challenging.
2. You Have Built Up Good Credit Score
When applying for a home loan, your credit score is crucial because lenders will use it to assess your borrowing capacity. Waiting until the 30s to buy your first home in Adelaide gives you time to establish a good credit history, making you an ideal borrower.
3. You Have Learned The Value Of Money
Being in your 30s likely means you have already paid most of your debts accumulated in your younger years, like credit card debts, car loan, and student loan. Moreover, it is essential to reduce your debts before making any more extensive financial commitments such as property purchase. When banks see that you managed your debt repayments successfully, they will be more willing to approve your mortgage.
4. You Saved Enough For A House Deposit
Buying your first house in your 30s also gives you enough time to save for a house deposit. Ideally, 20 per cent of the property’s price should be held as a deposit as it can help you avoid Lender’s Mortgage Insurance (LMI). In addition, having a significant amount of money help you manage added costs associated with homeownership like homeowner insurance, stamp duty and other charges.
5. You Know Your Priorities
Like where you want to settle down, when you are in your 30s, you are now entirely informed of your priorities. It is by this time that you must have realized homeownership can help you build equity and stability. You must have planned your budget, decided the type of house, and reviewed all other aspects related to property purchase. It is relatively complex for young people to enter the property market who still weighs their priorities and commitments.
Buying your first home is a long-term commitment and requires efficient management of your finances. Consulting with an experienced first property buyer specialist can help you navigate the home buying journey like a Pro.