Buying

‘If you want it, go for it’: how Sophie and Tim bought their first home together

Getting seriously coupled up is a big life moment. Getting seriously coupled up and buying a house together is an even bigger one. Sophie and Tim have been through the whole journey – from knowing what’s important to each other to navigating the sometimes-confusing world of home loans, and so much more. We chatted to Sophie and Tim, a dream team, about how they decided the time was right for them to buy their first home together, and how they talked (and talked and talked) to navigate through any sticking points along the way.

Hey, you two. When did you decide to buy together, and how did you get started?

Tim: We felt we’d ticked off most of the major things we wanted to do as a couple. We’d gone on a big overseas trip together. We were engaged. Naturally, the next step was buying a house together. It all clicked. And we both had stable full-time jobs, so we figured it was the right time for us to save money and put it towards something.

How did you come together to make decisions about what needed to be included in your first home?

Sophie: We both made a list of what was important to each of us, but we did it independently so that we didn’t sway each other.

When you’re in the moment and viewing properties that have been styled beautifully, it can pull on all of those emotional strings and make you go, “This is perfect!” At one house, I got swept away by all of the soft furnishings, but Tim was very quick to remind me that it did not tick any of the things that I had on my list.

So having that checklist we’d made together reminded us both of the different things that are important to each of us.

Did you face any major sticking points?

Sophie: It’s easy to think that your home deposit has to be 20% for you to even enter the market. Like, “If you don’t have it, don’t bother.”

Tim: If you don’t have a big understanding of the market or banks, you just get drilled with that common number. That’s just something you hear everywhere.

Sophie: That was our initial sticking point. We felt ready. We felt that we were at this point in our life that, surely, we could make this work. But then we thought, “Hang on. A 20% deposit…” We were close, but we weren’t there yet. Thankfully, speaking with our home loan specialist showed us there were alternative pathways, like paying lender’s mortgage insurance or having a guarantor.

Did any step go particularly smoothly for you? And do you put that down to luck or preparation?

Tim: Buying was surprisingly smooth. We’d found a place, but it was a choice between it and another. The real estate agent was keen to move quickly. We looked at it on Saturday, and we came back and looked at it again on Wednesday and said, “We like it!” And by Friday afternoon, we signed the contracts.

Sophie: I think we had a preconceived idea that the negotiation would be difficult – that it would be taxing. Tim feels like it was a bit of luck. I think it’s a combination of that and research. We understood roughly what the process might pan out like. So we were prepared.

Tim: And we did know from our research that the price was reasonable for the area and for the apartment that we were going for.

Was there a point along the way that you needed advice to navigate?

Tim: Having zero knowledge about loans! All the different options – like interest rates, variable versus fixed loans, principal and interest – were making our brains explode. So actually speaking to a home loan specialist made that a lot easier.

Sophie: All the terms get thrown around, and when you unpack them, you realise very quickly: “Hang on, I actually don’t really know what I’m signing up for here.” Having it all laid out on the table in layman’s terms really helped us make the next, right decision for us.

Did you have to change your budget a lot while saving?

Sophie: I don’t think we had to change it as dramatically as we thought we would. We had strategies in place, like regular monthly transfers into our savings accounts. It was more the amount that we played with – that variation to find that sweet spot.

Tim: Having incomes from two full-time working adults made it easier, too. The biggest shift was trying to work out our fixed expenses and variable expenses to see how much wiggle room we had.

What did it feel like when you got the keys and you stepped through the front door, when it was all yours – did it feel worth it?

Sophie: It was a real sense of achievement and relief all bundled up into one!

Tim: I felt lucky, knowing that this home was now ours. Though, all of a sudden, you’re spending more money than you could ever think you were going to and it’s a bit like, “Did I even check everything right? Is it the right place?” But when you walk through the door, you think: “Yeah, this is what we wanted. This is great.”

Can you tell us the top three things you feel like you did right?

Tim: One was budget. We committed to it. Once we put the money into the savings account, it wasn’t coming out. It’s not negotiable.

Sophie: We explored all our options to make sure that we weren’t siloed in our thinking. We considered everything before making a decision. That gave us the confidence to move forwards.

Tim: And when we thought we were ready, we made it happen. You’re always going to think there could be a better time to do it. But if you want it, just go for it. There’s never going to be a perfect time. You’ll make it work.

Is there anything you wish you knew before you headed out on your home-buying journey?

Sophie: If you have a guarantor or are prepared to take on the additional costs of LMI you may not need that 20% deposit! And you might not need to sacrifice as much as you think. We knew we were going to have to dig deep, but we didn’t throw away everything.

Tim: Talk to someone, talk to the bank, talk to a home loan specialist. Whatever your plan is and whatever you’re thinking, they’ll clarify so much for you. They’ll set you on the right path of what you need to do to get where you want to be.