It’s a great time right now to be a buyer in the Australian property market. Major cities like Sydney and Melbourne offer a diverse range of property from new developments, luxury loft apartments to landed family homes, and construction is up, meaning that high quality new builds and existing homes are available across a range of price points. Continued growth means property remains a great investment with the benefits of ownership continuing in the years to come, so if you are able, there is every reason to get on board and buy.
Buying your first home is a major life step with a lots decision-making that can become daunting, as well as the financial hurdles that will have to be cleared to be successful in securing a home.
Having a strategy or some key steps in mind will assist you in not only achieving ownership of your own property, but also embracing the experience and finding a place that you can really make your own.
Here, we share some essential steps for successfully buying your first home.
1) Get your finances lined up
Be realistic about what is affordable for you so you know that the properties you set out to view will be an achievable buy. Now is the time to make an honest assessment of your savings, earnings and debts, ideally alongside a suitably qualified and accredited mortgage advisor or broker, who can give you an idea of the amount of money you will be able to successfully borrow and the deals that will suit your eligibility.
2) Boost your deposit
As soon as you know you want to buy it is prudent to build up your cash savings for a deposit. A larger deposit will reduce your monthly mortgage payments and if over 20%, can save the expense of lender’s mortgage insurance. For some, it may be worth adjusting your choice of property so your deposit can be larger for a cheaper property.
Are you eligible for government assistance with buying your first home?
It is well worth finding out your eligibility for federal governmental assistance as a first time buyer.
The Australian government’s First Home Loan Deposit Scheme aims to help 10,000 low and middle income buyers secure a mortgage annually across Australia.
The program is subject to price caps depending on your state and territory and is assessed on applicants’ taxable income.
3) Research, research, research.
A new home is a major investment and you want to get the property that is just right. Get online, get maps and get out and about exploring the neighborhood that you think will be a good fit and offer opportunities within your price range.
Here are some key research points for a first time buyer:
- Locality: amenities, transport links, jobs and local economy and crime statistics.
- Typical selling prices for a home of the size you require.
- Local real estate agents
- Local property taxes and utility costs to assist you in working out whether an area has affordable living costs.
- New or scheduled developments that may be worth buying in.
Have you considered visiting display homes?
Show homes are a great way of gaining experience of the property you will buy especially if you intend to work with a builder.
There are some great display home villages across Australia which showcase the best of Australian house building and residential architectural styles. Visiting a display home gives you the opportunity to ask questions, get an appreciation for the layout and utility of your target properties and see the quality of fabrication and construction. Display homes are all over Australia and you should be able to locate them in your target area.
These 3 key steps will place you at best advantage as a first time home buyer, and ensure suitably informed about the market and the action you need to take to find your perfect home. Remember to ask questions, take your time and not feel pressured. The right home will find you!