Last night I went to see new clients who are looking at purchasing a property. They are first home buyers who are just figuring out what to do. Originally from South Africa they moved to England before settling in Australia. Now they are happy in Australia the next step forward is buying their own home. They have both recently started new businesses and have started putting some money aside for a house deposit.
During the appointment at their house I sat down with and went over the in’s and out’s of house purchasing in NSW. I gave them an idea of how much money they would need to contribute for a $400,000 purchase. I looked at the repayments they would be expected to pay for the loan.
We went over some budgeting and then set up a savings target. We need 2015 tax returns before they will be able to borrowing funds. Using that as the end date for the savings we calculated the weekly amount they need to save to get them to their goal. Since the appointment I have created a spreadsheet which I will update regularly as their savings increase. By doing this the clients will keep track of their savings and we can make sure they remain on target.
We have 9 months for them to save they funds they need to complete a purchase. I’ll let you know how they go…