A guide to purchasing property for savvy first home buyers
Purchasing your first home (or any home, really) can be an exciting and emotional experience. You’ve been saving for what feels like an eternity, removing all temptations of spending, you’re even mourning the memory of your last Smashed Avo Sunday Brunch. But finally, now, with a hint of trepidation in your stride, you’re ready to make your move. As interest rates hit an all-time generational low, you are probably thinking ‘it’s now or never’. But wait, before you go taking the heart-palpitating plunge, let us look over some considerations to ‘fool-proof’ your first purchase.
First and foremost, understanding your budget is crucial. Not only do you need have a realistic view of your current spending habits/savings ability, but you also need to realistically project what this might look like in the future. Calculating your immediate vs future financial landscape will provide clarity around affordability of your mortgage, in conjunction with your monthly mortgage repayments. A common mistake made here, is often people don’t account for all aspects of their spending, and unfortunately, this leads to a lifetime of baked beans for dinner, and an immeasurable amount of stress – no mortgage is worth that!
Make sure you research the additional costs of buying a home, such as conveyancer fees, mortgage set-up costs and of course, stamp duty. The addition of these costs can potentially alter your mortgage capacity, so need to be considered before you ‘find the home of your dreams’!
Don’t forget too, to check your eligibility for any government concessions or first home buyer grants, as these are specifically designed to encourage people to enter the marketplace and may offer substantial savings. Each state has a slightly different incentive, so it is worth jumping online and investigating.
Finding the right mortgage broker is also imperative. It’s these guys that will be doing the hard yards, finding you the most appropriate deal, so make sure you secure one who has a broad understanding of all products out there, and isn’t affiliated with any one brand/product line.
Look beyond the property
Once you’ve got a firm idea of what you can afford, or, what you would like to spend, make sure you research all of your options; for example, not only the suburb or location, but what style of home you’d ultimately like to end up buying. It’s around this time you should start to ponder what are negotiable considerations, and what are not. Explore desired suburbs, along with neighbouring or adjacent communities, as sometimes your ‘bang for buck’ can dramatically change, the broader your search radius is. Check for amenities, public transport facilities, local schools, and shopping facilities – all factors that will help determine the ‘live-ability’ of the area.
Once you have settled on an area(s), make sure you explore the range of housing options you may have, until you decide on the best one for you. Depending on your budget and interests, you may be better off building, renovating, or perhaps purchasing a new build or an established home; these will all vary dependent on area and of course, your personal situation and desire.
How we can help
Hunting for the right property to purchase, especially your first purchase, is an emotional and exciting journey. It’s a mixed bag of confidence and uncertainty. However, understanding each influencing factor, and making sure each small decision is the right decision for you, will empower you to make a clear and confident final move to secure your home.
If you would like to discuss your options as you look to purchase your first home, our Eview Group agents are readily available to chat all things real estate. Find your local agent at www.eview.com.au