Making the choice to purchase your first home, as a homeowner or investor is an important decision. Though it may be daunting it can also be an exciting time in your life. We at Kaboodle Finance, wish to encourage and assist you in making sure you are completely prepared and feel comfortable with every decision going forward. Whether you are purchasing a property on your own or with a partner, we are going to provide the top 5 tips with every first home buyer MUST know.
Calculate the finances you have saved. Being aware of the amount will allow you to estimate the extra cash you must save or borrow to purchase your first home.
Typically a home loan in Australia is for 25 to 30 years, with this length of time it is important when deciding on the correct borrowing amount and time frame.
Once you are aware of your finances you will then be encouraged to look around at properties, which will be within your price budget. Depending on the areas that interest you and proximity to transport will be the deciding factor on the price.
Tip2: Set a price limit on your new home
There are many beautiful properties on the market, however knowing your financial plan will help in preventing you overspending and placed with a large amount of debt. On top of the purchase price, there are a number of costs to include.
- Loan application
- Lenders mortgage insurance
- Government costs
- Legal fees
- Strata or house inspection
- Ongoing costs
Tip3: Look beyond the property
Often people will start planning ahead when it comes to purchasing a new home. They may look ahead and visualise themselves living in the house 5 years in the future adding a swimming pool or redoing the kitchen or bathroom. This is when emotions get in the way and you ignore the reality of your purchase. Instead of thinking about the future, think about your home surroundings. Make inquiries in regards to the council are there town halls, libraries, recreation facilities, parks and gardens in the area you are looking at. Are there any road works or structures planned to be built.
One important aspect when buying a property is the location. When looking at a certain area you need to consider:
- The number of properties up for sale and how often properties are sold and the price.
- The distance from where you originally live, are you willing to move.
- The proximity to shops, schools and transport.
- The level of crime within the area
- The government infrastructure proposals that may impact your home value.
Tip 4: Are You Eligible For A Home
Not everyone will be eligible to purchase a home or investment property. However, with help and guidance from professional mortgage brokers and being aware and sensible there are ways to achieve your dream property..
Options you may be interested in:
First homeowner grant
- The state government will offer a one-off grant to any first home buyer who meets the criteria.
Stamp duty concessions
- Depending which state you live in, some state governments will provide incentives to help buy your first property. For the first home buyer, the stamp duty on the property price will be removed. The stamp duty is based on the property price and the property will need to be lived in within the first year, this could make it difficult if you are looking for an investment.
First home buyer super saver scheme
- An eligible first home buyer can retract their voluntary super and add these funds to their home deposit.
Tip 5: Property inspections
Before purchasing a home, it is recommended to have the property of your choice inspected. Take your time and have the property thoroughly checked as this is important to find any hidden problems. A number of people may decide against a building or pest inspection due to the outlay of extra finances. After the property has been purchased the new owner must fix any issues. It’s worth investing in a building inspection prior to moving forward, this will save you time and money in the future.
A property purchase is, without doubt, a large amount of money to outlay. To guarantee you will be happy and assured you have made the correct decision, obtain reliable and dependable professional people on your side. Contact Kaboodle Finance for everything first home buying. We have extensive knowledge surrounding first home buyers and will be more than happy to provide you with every tip.