Taking the plunge into real estate? Don’t go in empty handed.
For first home buyers, the thought of buying a home can be overwhelming. The first home buying process can be lengthy and tiresome. And unfortunately this isn’t a cut and dry case where one size fits all.
Here are 6 amazing tips to help you make the transition from being a renter to a first home buyer as smooth as possible.
1. Organise your finances
Leading up to your purchase, sticking to a budget is essential to achieving your home ownership goals. Set yourself a strict budget and get a clear idea of your cash flow. When the time comes to pay for a mortgage you’ll want to be sure that you can afford your monthly repayments.
2. Save a deposit
Once you’ve set your savings budget you should be well on your way to increasing your savings. To be competitive within the home buyers market it is advisable to have a large deposit (at least 10% of the purchase price if possible) saved before you even start looking.
The larger the deposit, the more equity you have in the property right from the start, which will lead to a lower rate of interest. A large deposit will also show your potential lender how committed you are to your home purchase and your aptitude for making sound financial decisions.
3. Use a mortgage broker
Mortgage brokers are available to offer advice on suitable lenders that suit your needs and can help you find the most suitable home loan for your situation.
They are independent of banks and financial institutions and are experts in the business and have access to a wide range of lenders and funding options based on your situation. Mortgage brokers can assist if you are a small business owner or contractor.
4. Use the First Home Buyers Grant
The First Home Buyers grant is available to anyone in Australia who is purchasing their first property (ex-pats who have owned property in another country are also eligible).
There are grants for new builds and also existing property, so be sure to jump online and do your homework to see what grant is available for you.
5. Focus on affordability
When you are ready to make your purchase always focus on your budget and be sure to set your budget so that mortgage repayments are easily repayable.
Be careful not to over extend yourself, as from time to time there will be bills that arrive that throw a spanner in the works. Look at taking on a mortgage that is easily affordable for your monthly budget and always ensure you have some extra cash available just in case.
6. Don’t get overwhelmed
Buying a house is one of the biggest and most stressful things you can do in your life. It’s full of emotional ups and downs and the financial commitment can be a unique pressure for individuals.
Throughout the home buying process you will deal with a range of experts including:
- mortgage broker
- building inspector
- real estate agent
Also, don’t forget all of your friends and family who will tell you the best way to do things. Each person you deal with will all have different personalities and will see their advice as the best advice.
Be sure to divide the first home buying process into bite-sized pieces and do your research. If you talk with professionals during the process you will have a smooth transition to becoming a first home buyer.