As someone who has been trudging the rental treadmill for a while, or maybe has never quite found the right home at the right time, getting your foot in the door of the property market can be one of the most exhilarating experiences of your life. But before you make that almighty jump, what should every first time buyer know?
By keeping these three golden rules on hand, you’ll be well on your way to a happy, fulfilling life in your first home.
1. Don’t get sucked in
It’s easy to be overwhelmed by the headlines and emotion – “house prices are rising”, “don’t miss out”, “Brisbane is set to boom”. But in reality, pinpointing a boom suburb – or a flop – takes a bit more work. There is a huge amount of info now available on house prices, and the amount of time you should spend on your research should be in proportion to the significance of your purchase….this is likely one of the biggest purchases you will make in your entire life….it is wise do your homework.
Don’t look upon this homework as boring, make it a challenge. Why not be more knowledgeable on your suburb and market than the local real estate agents?…getting your purchase right will mean more to you in 5 years time than it will to the agent.
Sound market research will ensure you get a home suited to your specific needs. To understand your budget figure out how much you can borrow on your first home loan.
2. Start saving early
It’s no secret that buying your first home takes a bit of saving slog, but this doesn’t need to come at the expense of all the things you love doing. Once you’ve got your heart set on your first home, it’s best to start that savings expedition early.
Getting into the groove can take a while, but a cut back or three over the long term could make all the difference for securing your first home loan!
Help can be on hand with the $15,000 Construction Grant, discounts on Stamp Duty, and loan products with low deposit or parental guarantees; but you will need some savings or deposit.
3. Use your head
Let’s be honest: It’s hard to take all the emotion out of purchasing your first property! If you’ve been working hard to get the funds together, finding a beautiful house can lead you to make a rash decision – one that could cost you financially further down the line.
To avoid landing in hot water, weigh up all the costs and commitments that you’ll need to take on if you do make the purchase, including stamp duty and home loan repayments.
Mortgage Brokers advice is FREE. We are highly qualified experts who can find the best loan for you and advise on all the costs.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.