Things to Consider Before Buying Your First Home
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While buying your first home remains the pinnacle of the Great Australian Dream, breaking into the property market can be incredibly intimidating. Various factors need to be considered before considering to buy a property to prepare yourself when trying to reach your financial goals. Being confident in your knowledge of the housing market and your finances is invaluable when house-hunting, so we have put together a few tips to consider for when you decide the time is right.
1. Determine your property wish-list
What kind of property are you looking for? What are the specifications you desire in a house? Is there anything you need in your first home? Are you planning for little people in the future? Is it going to be an investment property? These are some of the practical questions you need to ask yourself when deciding what you want from your first property. Having a clear idea will allow you to research what kind of grants you are eligible for, or the estimated loan amount you will need.
2. Assess your financial position
Do you have other debts or personal loans? Does your income allow a steady cash flow for the ability to keep up with loan repayments? How good is your credit history? Will you combine incomes with a partner? Knowing your financial position back to front will allow you to work out what your limit to borrow is. It will also make it easier for a mortgage broker to organise a preapproval to assist in negotiating a price with the lender.
3. Get to know the market and the location
What is the current housing market like for first home buyers? Is it a good time to buy? Are interest rates low? What areas are the most appropriate for the kind of property you are after? What utilities are in the area? Are there going to be zoning changes in the future? It is important to consider the properties and area you are interested in as it can determine whether you can get a high capital return if you decide to sell or rent it out in the future.
4. Are there any grants you can access?
Are you using your first property as an investment? Are you going to live in your first home? For first home buyers in WA, there are some criteria you must meet when applying for a grant. Knowing which of those criteria you fit into will allow you to know whether you can access assistance when purchasing a home. To be able to access any first home buyers grant, the basic principle is that this will be the first property you have bought, and you must live in the property for at least six months.
5. Choose the right mortgage
What type of loan is right for you? How much can you borrow? Choosing the right mortgage can be tricky if you are researching by yourself as there are so many out there. Contacting a mortgage broker is an invaluable tool, as they can provide quality advice, and assess your finances to hunt down the deal that’s best for you. With extensive knowledge and contacts throughout the industry, our brokers at Select provide only the best for their clients.
6. Select your property wisely
What kind of maintenance will the house need? Is the building damaged in any way? What could affect the home in the future? When you begin house-hunting, it is important to consider structural inspections of the house, compliance problems, and any possible maintenance costs and issues that may come up in the future.
At Select, we understand that buying a first home is a big deal. We care for our clients and only want them to find the property that best suits their needs. If you would like to discuss your ability to apply for a first home buyers grant, discuss your finances, or are not sure if you are in the position to buy, organise an appointment with one of our friendly brokers who can help make your Great Australian Dream come true.