Buying a new home can be an exciting and challenging process for first home buyers. Here's an ultimate guide that covers essential things you need to know about buying your very first home.
There are two common ways of buying a property: A private treaty which is standard residential property transactions and buying a property off the plan.
Your Deposit is your initial contribution that counts towards the purchase price of the property you are buying.
Usually, a typical deposit involves 20 per cent of the purchase price but it is possible for a lower deposit amount ranging from 5-15% depending on your lender. However, a larger deposit amount is better for several reasons.
It allows you to take a smaller loan with smaller repayments monthly and usually offers better interest rates.
It is pivotal to set a budget when you're buying a home. Having your finances together helps you to look at the multitude of homes available for you to buy within your range of budget. Ensure you have a goal in mind. It helps to have that final number or an ideal place that you are saving up towards that acts as a motivation for you to start adopting this habit. Open up a separate savings account from your everyday account so that a fixed amount of savings stays in that account. This way there is less temptation to use the money from your savings account. Also, find a way to increase our income. Having savings after finding a stable job is great but finding ways to increase your income helps save towards your deposit faster. Simple ways include asking for a raise from your boss and selling unwanted stuff around the house.
Government grants make it easier for first home buyers to purchase their first homes. Ensure that you meet the eligibility criteria for these grants:
Throughout Australia, different grant schemes are offered in different states. The ones that apply to New South Wales are the following:
When buying a house, the location must be an ideal one. You would want to live in an area that reinforces a lifestyle that is modern and convenient for you and your loved ones. Look out for basic amenities such as major shopping centres, lively restaurants, Hospitals, Public and private schools, recreational spots and accessible transportation systems.
The following were voted as Sydney's top 5 suburbs to live in: North Ryde, Leichhardt, Hornsby, Collaroy and Newtown. Keep your options open and explore what's best for your family in the long term.
As a first home buyer, taking a closer look at the potential home you're interested in helps you to visualize your life there. This is also an opportunity to identify any major issues that the house might possess that you were unaware of before.
To make your decision-making process easier, make a checklist of the main facilities that you are looking out for ranging from the interior decor to the air conditioning system. This helps you choose between potential homes that you're eyeing depending on your criteria for how an ideal home should be.
With complex processes involved for first home buyers to find a place, seek professional advice from property sales consultants and mortgage brokers. They may be able to offer professional advice and tips to help you secure your ideal modern home to call your own. They are also able to ensure the necessary documentations are submitted and pass down vital information to you in regards to queries you might have.
Home is where the heart is and that is why choosing the place that you feel is the most suitable for you is important for long-lasting happiness. With more and more first home buyers entering the market and buying their homes, now is a great opportunity to secure a place you can call home. Start saving and never hesitate to contact our friendly consultants today!