Buying your first home is an exciting time but it can also prove to be daunting for first home buyers who are entering the property market for the first time. The following steps will assist you in choosing your first home:
1. Budget – know your budget before you start looking around. Speak to a lender to work out how much you are able to borrow, and how you will need to contribute. Having a budget makes it easier to choose the right property as it makes sure you only look at houses that you know you can afford and are within your purchasing capacity
2. Other costs – interest rates aren’t the only costs you should consider when purchasing a property. You will have to factor in additional costs such as government duties and taxes, legal and conveyancing fees
3. First home owners grant – Do you qualify for this? Please refer to first home buyer basics for more information regarding eligibility
4. Features –you should write a list of the features that you want to find in a house. This might be unit versus house, property size, proximity to the city, location that suits your lifestyle. This way when you speak to a real estate agent, or start viewing properties online, you focus on what you really want and this helps cut down the time that it takes you to search for the right property. It pays to be realistic with your expectations and what you can afford, so that you can stay open minded when you start looking for a property
5. Location – the location you start house hunting in will be determined by factors such as budget, personal preference and house features/size that you require. Work out the areas that you are interested in before you start searching
6. Short or long term plan – your personal circumstance and future plans will determine the sort of property that you choose to purchase. If you are for example, married and plan to start a family in a few years, you will likely choose a home that can cater for children and is in a location that is close to schools and parks
7. Talk to a real estate agent – once you have chosen an area that you are interested in, talk to a local agent to gain an understanding of the market and to start looking at houses that would be suitable
8. Order a CMA property report – you should do your own independent research when looking for your property. You can order a free report with loans.com.au today by calling us on 13 10 90! The report will give you a comprehensive breakdown of the property you are looking at purchasing, including a description and previous sale prices. It will also go a step further and provide information such as recent sales in the area, a profile of the suburb including median sale prices, a breakdown of the demographics of the area including household structure, how many people rent vs. own in the suburb, the age breakdown of the area and the average income in the area. The best thing about this report is that it’s free and we are more than happy to run it for you.
This information has been prepared without taking into account your individual objectives, financial situation or needs. You should, before acting on this information, consider its appropriateness to your circumstances.