9 things First Home Buyers should know
There’s no better feeling than leaving your parents’ home to move into a place of your own. Choosing your own décor, enjoying the privacy, and hosting house parties with friends – what could be more exciting? Well, independence does has its perks but it can also be a little overwhelming. Before you purchase those ottomans and throw rugs, make sure read these 9 must-knows to help you understand the process.
There are A LOT of options
What many first home buyers don’t realise is that there is a lot more to a home loan than just the interest rate. From redraw facilities to additional repayments and everything in between, certain features are quite valuable depending on your situation. Talk to us today and we can help you sort through what’s specifically relevant to you.
You need be prepared. No seriously, be prepared.
Buying your first home is a huge step and you need to know what you’re getting in to. A big part of the process is savings and then more savings. If you save $700 a week it would still take you a few years to afford a 20% deposit on an average-priced house in Sydney. Start saving now.
How much should I have for a deposit?
Putting down a larger deposit can have many benefits over both the short and long term. With a deposit of 20% you can access a wider variety of loan options and it also means you most likely won’t have to pay Lender’s Mortgage Insurance costs. However, with prices at record highs in Australian capital cities, saving for a large deposit could take much longer than you would like. There’s a trade-off in speed versus cost when it comes to deposit and it’s a balance that you’ll have to consider.
The First Home Owner Grant
If you’re buying a house for the first time the Government will grant you up to $15,000 (depending on the state you’re buying in) tax free to help you on your way. You can use this for your deposit or apply for it later as long as it’s within 12 months of settlement/completion. You would be crazy not to take up this offer.
Think about the future
Chances are you’re not going to stay in your first home forever, so it’s a good idea to future proof your investment. Look into statistics about suburbs you want to buy in. Are prices likely to increase or decrease? Is there a new rail-line going? Does it have better access to schools and shops? Thinking about these will help you turn the biggest profit when it comes time to sell.
Make a checklist/schedule
When it comes time to start looking at houses make sure you have a plan on the next steps. Schedule home inspections, appointments with banks/lenders and do research in your spare time. Keep updated, keep informed and keep busy.
Make sure to check the property thoroughly
Even if you think you’ve found your dream home during house inspections, don’t jump to hasty conclusions. Carefully check the property for any defects. Watermarks in the showers, sagging ceiling, mould and cracks are all signs of serious long term problems. As a first home buyer you do not want these in your first year (or at all). Any money saved on renovations is a bonus.
Get the nitty gritty sorted early
Once the process has started and you’ve all but acquired the keys to your new place, make sure you look in things like amenities and moving costs early. Gas, water, phone and internet all take time to get set up so start the organising it sooner rather than later. Booking removalists or hiring a truck are better done early as emergency rates will be higher. Always think about your bottom line.
Don’t forget to buy toilet paper
It sounds silly but trust us, you don’t want to forget. At least buy one packet early so you’re not stuck at 11pm on your first night wishing you had listened to this article.
Happy house hunting and remember to contact us when you’re ready for information about our great rates and services.