Buying your first home can be a daunting endeavour but it doesn’t need to be. From our experience in the real estate industry, here are some top tips for first home buyers, for how to prepare for your first property purchase.
- Set a timeline – set a realistic timeline to buy a house; give yourself time to save funds while maintaining your life interests.
- Be realistic about what you need – think about the type of property that best suits your current needs as well as fits in with your intentions for the next 5 years; for example, if you intend on starting a family you might want to purchase a larger house that needs a little work which you can complete over the next few years rather than a smaller property that is already renovated.
- Consider alternatives – you could buy a ready to move in property but don’t rule out land or buying off the plan; the government gives additional subsidies on many occasions when buying in new suburbs or in future development.
- Speak to experts – engage a mortgage broker or your bank to understanding your borrowing capacity and repayment capacity. Mortgage lenders consider multiple factors like income, current debt level, time in existing working etc.
- Calculate all the expenses – when calculating your sums remember additional expenses like rates, stamp duty, homeowner’s insurance, ongoing maintenance etc.
- Research – Go to as many open homes as possible, speak to agents…you won’t know if you’re getting a deal if you don’t look at the competition. You might sacrifice a few Saturday morning sleep-ins, but you will reap the benefits in the long run.
- Check what you’re buying – before you make any purchase make sure you are satisfied with the house; building and pest inspection reports come standard in sale contracts for houses in the ACT but don’t be afraid to ask questions of your agent, solicitor and have your own checks completed.
Buying your first home is exciting…it’s something you only do once in your life and it marks the start of a new chapter. Take your time, plan and consider all your options, that way when the time comes to make the final decision you’ll be completely prepared.