4 Strategies To Help You Achieve Your Property Goals in 2022
Buyers are kicking off 2022 with a bang, despite the turbulent growth in house prices we saw at the end of 2021.
Many of our clients have expressed excitement at buying their dream home this year, and the good news is they are doing all the right things to obtain their goals – starting with cutting their spending and saving their moolah.
Aussie property buying resolutionsAccording to a survey conducted by financial comparison site Canstar, buying a property continues to be a high priority for Australians in 2022 – regardless of the fastest rising prices and annual rate since the 1980s.The survey of 2124 participants showed that 18% (an equivalent of approximately 3.6 million people) are determined to centre their goals around finances in the new year, and a quarter of participants aim to save a significant amount of money by December 2022.Unsurprisingly, a noteworthy 21% are actively searching for a property to live in, while 10% are working towards their major goal of buying an investment property in 2022.
Simple savings strategies
If like our clients you are focussed on purchasing a home in 2022 and are prepared to make some minor changes along the way to help you get there, here are four simple changes you can easily implement to make your New Year’s Resolution stick.
Use a budgeting tool
Kickstart your financial goals with a budgeting tool that works for you. If technology isn’t your thing, try recording your expenses in a basic excel spreadsheet each month to find a simple budget-tracking app that meets you where you’re at.
You may even want to check out your bank’s website or speak to a customer service representative to see what tools they have available, as many banks provide a living expense calculator online as part of their banking software available to all customers.
Establish a non-negotiable savings goal
So you’ve determined your expenses and general cost of living, now you can work out how money you’ll need to save per week in order to buy the home or property you’ve got your eye on.
Here you can see how much you need to cut out financially, and what can be cut out realistically to achieve your goal.
A hot little tip I like to throw out there is to set up a separate bank account for your savings that you promise to only add to and never dip into. Trust me, seeing your finances grow and gain interest over time is super duper satisfying.
Decide what you can live without
I can live without a $5 coffee every day, but I can’t live without coffee entirely (I’m only human!). Likewise, I can live without that designer pair of heels I’ve been toying with the idea of, but I can’t live without my flip flops (comfort first, you guys).
While it would be great if we could all muster up enough self-control to only live with what we need and forgo all the creature comforts we’ve come to take for granted, keeping it simple is key here.
Don’t commit to go without everything, because you will only feel disappointed when you cave in. I want you to think, what is one bad habit I could go without this year – a bad habit that is costing me money, and is something I could live without.
Whether it’s a weekly takeout night, a daily cafe coffee, monthly mani/pedi or a subscription service, choose one financial bad habit and say sayonara now.
To make it feel more fulfilling, put the money you would have spent on your creature comfort into a jar in a prominent area of your home and watch it fill up over the next 12 months. It’s oddly fulfilling.
Meet with a broker
One more thing. If your goal is to buy a property in 2022, what I really want you to do is set up a meeting with a trusted mortgage broker to find out what your borrowing capacity is. Not only is it important to establish a valuable working relationship with a broker early on to find out if they are a good match for you, it will also give you an idea of what an achievable borrowing amount is for your situation.