Buying your first home is a big commitment. As a doctor you are normally going to be looking to buy something to live in that is close to work and that may become an investment property one day. Regardless of what your individual plan is these bullet points are some important things to consider during the preparation.
- Don’t get a big car loan with high monthly payments if you also want to buy a property early in your career.
- Talk to your Bank or Broker about structuring the loan in a way that maximises your options if the property changes to an investment property later on
- Try and have a 10% deposit saved if possible. If this is not possible as a doctor there are ways to get into the market earlier without paying huge extra fees. Talk to your Broker or Banker about these options and you NEVER should or want to pay mortgage insurance.
- Forced savings is a very good idea. If you find yourself struggling to save money for a deposit having a loan that you are forced to pay off can be a very good way of getting ahead
These are just some very general and common-sense things that are important to think about when you are progressing towards the purchase of your first home.
Starting the journey of creating wealth nearly always starts with building equity in your first home and the start is the hardest part of creating wealth can be getting started.