5 best budgeting tips for buying a new home

The weeks leading up to purchasing a home can drive any good-intentioned human straight to the pantry. I have clear memories of too many coffees and donuts during the week leading up to signing those home loan contracts. Firstly there was the deposit we had to pull together at late notice and then tapping away late into the night on an excel spreadhsheet working out ‘our stuff’ and making sure we’d be able to meet the extra payments. We were forced to tighten our belts even more than we were already doing, which was hard – considering all the donuts we’d been eating.
Below are some tips for budgeting with your new home in mind:

1. Keep an open mind

The first house you love isn’t necessarily the only one that’s right for you. If you look to a company like Coral Homes , you’ll discover that beautiful, modern homes are aplenty… so the one you’ve taken a fancy to isn’t the only perfect choice. With this in mind, you can make your decision based on which home is best for you, as well as best for your budget.

2. Cut down on daily expenses

Little savings in the time building up to your purchase can make a big difference in the long run, which will make the post-purchase period a lot less stressful for you and your family. There are many small ways to save dollars each day. Try driving less to cut down on petrol costs, making lunch at home rather than buying it out, and trimming any excess electricity usage to take some strain off your power bills. While none of these measures alone will make a substantial impact on your budget, combining them and sticking to them over a period of time will see you with a significantly healthier wallet when it comes time to purchase your new home.

3. Essentials first

When it comes to furnishing your new home, it’s easy to get carried away, but it’s not always practical or responsible to purchase all your new home’s furniture at once. It’s important to buy the items you need before you start indulging in the ones that you want. For example, things like a dishwasher, extra lounges, and televisions can all be put on hold until the truly essential items have been taken care of.

4. Set clear goals

A simple end goal of ‘being able to afford the house’ isn’t going to make sticking to your budget easy or satisfying. What will, though, is setting yourself progress goals along the way. This will give you the opportunity to keep track of your progress, while also motivating you to achieve the results you’re hoping for. Mini goals can include having a set amount in your savings by a particular date or being able to furnish a particular room in your new home.

5. Prepare for associated costs

There are a number of expenses to be aware of, especially if this is your first time buying a house. Hiring removalists, getting a pest inspection carried out, and paying the cleaners are just some of the incidental costs that could make the road to your new home unexpectedly bumpy… that is, if you don’t know to anticipate them. It’s important when setting your budget to recognise the costs you’ll face at different stages of the home-buying process and account for them.

A budget is a crucial tool when it comes to being prepared and able to purchase a new home. By setting goals, accounting for costs, and taking steps to save money, you will find yourself better off when the purchase day comes, as well as in the weeks and months following it.