A Guide for First Home Buyers
Whether you are entering the property market solo, moving in with a partner or have a family to consider, purchasing your first home can be a tough decision. Many first home buyers are unsure where to start the decision-making process. Below are some of the things you need to consider before entering the property market.
- If you have never purchased a home before, it is important to observe a range of properties and gain an understanding of the current market.
- A combination of your own research and the advice you receive from professionals will give you the best perspective. More time will also allow you to find the best value for the home itself, as well as the opportunity compare interest rates and find a loan that best suits your needs.
- Many experts agree that the best method is to have some idea of where you want to live before starting your search. Location is significant for a number of reasons. Many buyers have an approximate idea of where they want to live, based on the location of their workplace, friends and family. It is also important to consider the proximity to health care, recreation and public transport.
- Remember: you can change and renovate your home, but you can’t move it closer to the shopping centre or further away from a noisy factory. Having an area in mind will help narrow down your search and save you from feeling completely overwhelmed.
- If the neighbourhood is close to hazards or has a reputation for higher crime rates, this sort of information will often reveal itself in a quick google search.
- As you begin to browse homes and organise inspections, it is you can street or suburb and ask the real estate agent as many questions as possible. Location is a great starting point, but also remains a key factor throughout each stage of your decision.
Here are some of the primary things to consider when assessing your finances:
- Working out a detailed budget is vital to understanding what you can afford in the long-term as well as how much you can afford for a deposit. You need to factor in any market changes, such as rising mortgage rates as well as any possible changes to your own situation.
- Factoring in the initial start-up costs of purchasing a new home, including furniture, removalist hire, appliances and utilities.
- Your income, expenses and debt will influence how much you can borrow. After factoring in your expenses and establishing what you can afford, you need to make sure your financial stability is reflected in paperwork. You can maximise your chances of approval by checking your credit rating and reducing as much debt as possible. In your application, it is also important to present your employment history in the best possible light.
- There are a number of loan and mortgage calculators available freely online.
- It is also worth finding out whether or not you are eligible for a First Home Owner Grant, which may assist in covering expenses.
Types of Property
- Your lifestyle will have a major impact on what kind of property is possible. You may be looking for a new home complete with everything. Or, you may want an older property that you can renovate and personalise.
- If you are living on your own, this will all come down to your personal preferences.
- Couples, families or anyone considering children will need to ask themselves what the essentials are- including how many rooms are needed and whether or not there will be adequate space for everyone to live comfortably. If you have pets, or desire to have pets in future, this is another factor to account for.
- Finally, have a clear idea of what features are important to you, whether that be a yard, a swimming pool, a garden or a fireplace. After establishing what you need, it will be these additional details that can truly make a home stand out for you.
- When buying your first home, it may feel as if you are swamped by never-ending fees. But many experts agree on the importance of closely inspecting the home and seeking independent advice and before committing to the purchase.
- Having a home inspection can save you from being hit with unexpected costs later down the track. A house is a long-term investment and you want to ensure that your dream home is functional, safe and free from termites.
- It you have the chance to wander down the street, it is worthwhile striking up conversation with neighbours about the home you are considering. By ensuring that you have matched your personal criteria and eliminating any potential risks, you can feel confident that your first home will be the right decision.
This article was originally published on PropertyJobs.com.au