02 Nov 10 Tips For First Home Buyers
When it comes to buying your first home, it can be difficult to know where to start. Luckily, we’ve put together this guide to help you get a foot in the door of the first home buying process. Here are 10 tips for first home buyers…
1. Location, location
A wise friend once said that it’s ‘better to buy the worst house on the best street than the best house on the worst street’. Although the idea of a ‘worst’ home may be off-putting, this phrase really is a wise one.
Consider this: the home you buy can be upgraded, re-decorated and re-vamped to suit you and your family’s needs. The neighbours, amenities and overall area, however, cannot be changed.
The first step in buying a new home is to think about what area is suitable for you and your family.
2. Consider a new build
A brand-new building may just sound like it will break the bank but it could be a worthy investment, especially if you can afford a large deposit.
All Australian states and territories offer some type of First Home Owner Grant. However, it is wise to visit your State Government’s website to check if you are eligible.
3. Assess your finances
When considering how much you can afford to fork out on your new home, there are a few things to take into consideration. Your lifestyle, bills, hobbies, social life and other expenses should all be accounted for.
4. Don’t just follow your heart
Whilst attending house viewings, you may just walk into a home and immediately feel that it’s ‘you’. But before you get into the nitty-gritty and make an offer, you need to think if the property is actually suitable for you and your family.
5. Think on a 8-year scale
According to experts at John McGrath, the average Australian will live in each property they own for 7.5 years. When considering your ideal home, think about how your circumstances may have changed in eight years. If the property seems like it will still be suitable eight years in the future, go for it!
6. Remember hidden costs
Most first home buyers are aware of the mortgage and deposit costs. However, there are also additional hidden costs included, such as legal fees, building and pest inspection fees, and stamp duties.
7. Use a mortgage broker
First home buyers need a little helping hand when it comes to finances and choosing the right mortgage. A mortgage broker can guide you through the process and ensure you make sensible choices.
8. Be financially approved before you go to your first viewing
There is nothing more frustrating than finding your dream home, beginning the buying process and then being denied finances. To ensure this doesn’t happen, be financially approved before you begin looking for a property.
9. Don’t exceed your budget
Although it may be tempting to push the budget a little bit to get that amazing home, is it really worth being financially strained for the next ten years?
10. There’s no such thing as too many viewings
It may begin to feel like you’ve seen hundreds of houses, but remember: the perfect one may be just around the corner! It’s important for first home buyers to be cynical when choosing a home. Take the time to consider each and every aspect of the property, its location and its proximity to amenities.