As a first home buyer, buying your first property can be an overwhelming process. There’s a lot to research, consider, and learn. The apprehensions or anxieties towards purchasing a new home are quite understandable. But don’t fret because we’re here to guide you through the process by sharing five things you must know when you’re a first home buyer.
Before the Royal Commission, it wasn’t necessary to profile a potential buyer’s spending habits; today, evaluating your purchases is an expected part of a lender’s process. It’s important to know that the process of getting a loan is more difficult and rigorous than before. And if you’re dedicated to start and complete your home purchase, it’s not an impossible challenge. It’s all about saving consistently and sticking to your financial goals. If your debt is minimal and you’re a responsible spender, it still puts you in a good position of securing the finance you need to buy your first home.
A larger deposit on your home means you gain access to a wider variety of loan options with lower interest rates. It also enables you to skip on paying lender’s mortgage insurance costs. However, you as a first home buyer need to be realistic and take into consideration the property prices of your chosen location and your capabilities to paying off a larger deposit. While it’s possible to take out a loan with a five to 10% deposit, you will have to pay the lenders mortgage insurance. It’s all about knowing the trade-offs of a larger deposit versus a small one.
Home buying doesn’t stop at just purchasing the house itself. There are many surprise expenses that you may not be aware of such as removalists costs, stamp duty, registration fees, pest inspection fees and more. That’s why it’s important to learn if you’re eligible for a first home owners grant. It’s a national scheme funded by the states administered under their legislation. Under the scheme, a one-off grant is payable to eligible first homeowners which can save you thousands of dollars.
A huge investment requires a thorough inspection. A home is likely the largest purchase you’ll ever make. It’s only fitting to ensure that you’re getting a quality property in line with the price you’re purchasing it for. Property and pest inspection are necessary for ensuring the structural integrity of your homes. Check for any possible defects such as sagging ceilings or if there is mould or cracks, which are common signs of long-term problems. As a first home buyer, these should not be present during the first year of your purchase or not even at all!
When in doubt, there are professionals who can assist you with the entire home buying process to make sure you maximise your benefits as a first home buyer and to make sure you get the most out of your investment. You can use buyer’s agents to assist you in the buying process; mortgage brokers can help you navigate the loan market, and licensed conveyancers can look over your contracts thoroughly so you always know what you’re getting yourself into. We have a great article here about how brokers can help grow your property portfolio.
It’s always good to think ahead and future proof your biggest investment. This means evaluating suburbs you want to buy in. Does it have good access to schools and malls? Are the prices more likely to go up or down? Learning the factors at play can help turn your property purchase into a profitable investment, and also give you the signals about when is the best time to sell your property.
At A9 Property, we provide first-time homebuyers knowledge on the world of real estate. A9 Property provides first-time homebuyers and property investors knowledge on the world of real estate. Our weekly real estate blog discusses a variety of property-related topics, including property investment strategies, real estate industry trends, and current property market shifts to give you valuable insights and help you make informed decisions. We specialise in off the plan properties – a popular investment strategy in Brisbane and Australia. If you're looking to invest, Check out our carefully selected portfolio of off-market properties for sale or contact us for an obligation-free chat to discuss how you can succeed in the business and make the right property investments.