WHY PEOPLE MOVE HOME – SAVING FOR A HOME DEPOSIT
Property prices have seen strong increases in Australia since the late 1990s, with Melbourne and Sydney seeing rises of 93.5% and 105% respectively since 2009 alone. Due to these increases, young people are finding it harder than ever before to save for that all-important house deposit. This is especially true for people who also have rent to pay! As a result, more and more children are moving back home with their parents to save for their first home deposit. But what can you do to make this transition easier?
DRAW UP A BUDGET
While you don’t have to pay any rent (or very little rent), it’s a good idea to have a strict savings budget drawn up. It allows both you and your parents to get an idea of how your savings pot is progressing. Remember, there are likely to be more savings you can make than just your rent payments, especially if you can split bills or save money by buying items in bulk. Set ambitious but realistic savings goals, so that you reach your deposit amount as soon as possible. Try and eliminate or minimise other unnecessary expenses too, such as entertainment, clothing or holidays.
RESEARCH THE BEST STARTER HOME
While you are saving up for a deposit, it’s a good idea to start researching the real estate market where you are looking to buy. You can attend open houses and spend time reviewing real estate listings to see what a realistic budget for a home is, as well as learning how to identify bargains so that you can jump on them quickly once you have approval! It is also a good opportunity to review different styles of mortgages so that can choose the type of mortgage that best suits you and learn what you need to do to get pre-approval.
BE SMART ABOUT WHAT YOU MOVE BACK HOME
While you have been renting, you’ve probably accumulated a home worth of furniture and mementos of your life to date. It can be hard to cram all of these back into a childhood bedroom, so hiring a storage unit is a worthwhile idea. Think about which items you are eager to hold onto to go into the new house and hire storage space that allows you to keep all of your important possessions safe until you can move. Don’t forget to factor the cost of this into your budget.
SET SOME GROUND RULES
Adjusting to living with your parents again can be hard, especially after living independently. It is a good idea to sit down together and work out some rules that suit everyone. Obviously, if your parents are paying all of the bills, there may be some non-negotiable rules, but generally, both parties will be eager to get along. Some ideas include time limits on watching television, visits from guests, cleaning and chore rosters or rules about how to use the kitchen. By having early conversations about these expectations, there is likely to be fewer sources of frustration later on.