When it comes to entering into your local real estate market as a first time buyer, there are a lot of different things to focus on at any one moment. Without the proper guidance it can become a little overwhelming, especially in larger metropolitan markets like Melbourne or Sydney. But if you're committed to the idea of buying your own home, here are some tips to help first time buyers make the most of their property experience.
Figure out where you want to buy
While this may seem obvious, this means more than simply choosing a suburb and moving in. There are a lot of different factors affecting location decision when it comes to buying a home. For example, take note of the location of amenities and their relation to the property you're interested in. Think about how easily you can access public transportation, shopping centres, grocery stores and schools.
This is simply because buying a property is a huge investment and not something that can be easily undone. So making sure you satisfy all your location-related needs from the beginning will help save you a lot of headaches in the long run.
Work out what your upfront costs will be
Without having had the experience of buying property before, some of the expenses that pop up along the way can be crippling. But if you take the time to research and catalogue the common costs associated with buying property, you can prepare yourself and your wallet for the various expenses.
For example, things like loan application fees, stamp duty expenses, and lenders mortgage insurance can sneak up on unsuspecting or uninformed buyers looking into the market. However, you will be able to discuss these with your finance providers to figure out the best avenue for you to take.
Furthermore, things like pest and building inspections aren't necessarily a essential cost, but should be undertaken before buying any property. This simply gives you some basic reassurance that the real estate you're buying is up to standard and doesn't have any hidden problems that could cause expensive problems in the future.
Make sure you're ready to act
One thing to take notice of is the rising popularity of property auctions across the nation. These competitive environments are fast-paced, with sales often verified and sealed immediately following the conclusion of the sale.
Being ready to act on this is important, with many vendors being unwilling to wait around for buyers to organise their finances. Therefore, seeking a pre-approval for your home loan is a fantastic way to be ready to go as soon as the sale concludes.
A home loan pre-approval allows you to approach the market with confidence by knowing exactly how much money you have ready to put towards property. Speaking with a lender and getting an approval will give you an edge in the local market, while removing any pressure to use it - these documents are valid for up to three months and can easily be reapplied for.
Keep emotions out of the decision
Shopping with your heart rather than your brain is another mistake that can be tragic for first time buyers. Remember: you don't own the property yet, so don't get too invested in the home. Otherwise, in the possibility that you're beaten by another buyer, it can be hard to move on.
Keep your search as impersonal as possible, thinking about the benefits in a calculated way and working with the averages rather than investing all your passion into any one property. Then, when you are successful in buying a house, you can commit your whole being to making it the best home possible.
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