What do you need to know about buying your first home
When you are looking to buy your first home, the process can seem overwhelming between the finance, real estate jargon and the advice that you will receive from anyone that you talk to.
Buying your first home is an exciting step into the world of home ownership and it doesn’t need to be as stressful as you are sometimes advised. It takes preparation and knowing your limitations before you set on the path the buy.
Work out your finance
Before you begin to look for your home and risk falling in love with a property that may be well beyond your means, talk with your financial adviser or financial institution to work out how much you can borrow.
They will look at factors like how much you have in savings, if you are borrowing with someone else, your income and any assets and if there is enough for a deposit and stamp duty.
You may be pre-approved for a certain level of finance based on the information that you provide, and this will give you a limit to know how much you can potentially spend.
If you are pre-approved, it will also mean that you need to stick to a budget when you are looking as any changes in your income or expenses before you purchase may affect your final finance approval.
Look into first home buyer incentives
In many states, there are provisions for first home buyers to receive discounts on things like stamp duty or lump sums toward purchasing your first home. Usually, there are conditions around the purchase price to qualify, using the property as your principal place of residence and if you are buying a pre-existing home or building.
Stamp duty is a government tax that is required in each state and there are often incentives for discounts or sometimes no stamp duty to be paid, depending on qualifying factors. It is best to check your state and talk with your financial advisor about what you may be eligible for.
Searching for your new home
Once you have a figure and budget in mind, you can start looking for your new home. It is important to look for properties that are within your means, remembering that factors will affect your mortgage, like interest rate hikes and the general cost of living and you don’t want to be caught short in paying your mortgage.
Work out the suburb that you would like to live in and the size of the property and your list of inclusions as part of a needs, must and wants list. This can help to narrow down your selection and help with working out the home you would like to buy.
When you have a list of properties, the fun part of inspecting homes and preparing for negotiating with sales agents or preparing for an auction begins. Ask our agents as many questions as you need to make an informed decision.
Making an offer
When you are ready to make an offer, talk with our sales agents who will help guide you through the process and communicate your offer with the vendor. In the case of an auction, they will register you for auction day and be available to answer any questions you may have.
When you have made a successful offer and it has been accepted, you will need to pay a deposit of 5% or 10% and contracts will exchange between the vendor and yourself, as the purchaser and then solicitors will prepare contracts for settlement.
Throughout the process, our agents are always available to answer any questions that you may have and help you through your first home-buying journey.