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 – house prices are rising here, unit values are plummeting there. But in reality, pinpointing a boom suburb – or a flop – takes a bit more work. Leaf through house price data from the past few years to check for trends. It might be that an area has just come out the other side of a dip and is poised for a comeback, making it a good time to strike. On the other hand, the boom might be on the way out.
These figures can give you the know-how to figure out how much you can borrow on your first home loan with confidence.
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!
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.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
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.