Tips for First Home Buyers
If you’re thinking of taking the leap and buying your first property, check out our handy tips here.
If you’re thinking of taking the leap and buying your first property, check out our handy tips below:
- Your first home doesn’t have to be perfect. Remember it’s your step into the property market, so you might have to compromise on size and location. If the home passes building and pest inspections and is in your price range, it’s worth considering.
- Don’t pay more than you have budgeted just to get into the market. Be patient. If you miss out on your perfect home at auction or another buyer makes a better offer, remember, there will be more open homes and auctions next week.
- But also, don’t pass on the perfect home because you found it early on in your search. Time spent researching property is crucial, but you don’t want to regret house number 3 or 4 that you inspected, because you thought it was too early to make a decision.
- If a property seems too cheap, ask why. If it’s a renovator’s dream, it could become a maintenance nightmare. So, try to factor in how much the property will cost in the years to come, not just on sale day.
- When setting your budget, don’t forget all those other costs of buying a home, such as stamp duty, legal fees, insurance and lender’s fees.
- If you are heading to an auction, make sure you can make an offer under auction conditions. That means securing finance and conducting a building a pest inspection on the property before you raise your hand on auction day. You need to be very prepared prior to bidding at an auction.
- Be sceptical. That’s not to say you should become a cynic, but it is a good idea to do your own research. If a property owner tells you that property in an area is hot, do your own research on sales data. If a real estate agent tells you that the council is planning big developments in the future, call the council and ask for more information.
- If you’ve saved a deposit, spoken to a lender and are now looking for a home to buy, it’s a good idea not to change jobs, make a big purchase (such as buy a new car) or take out a personal loan before you buy a property. These factors could all affect your borrowing power.
- As a new home buyer you might not have formed a relationship with a bank manager yet, so it’s a good idea to talk to a mortgage broker who can give you advice and introduce you to the world of buying and borrowing.
- Find out what you are entitled to as a first-home buyer – whether that is a grant on buying a certain type of property or a stamp duty concession. This could affect the kind of property you buy and save you thousands. Check out our blog on the grants that are available in the NT.
- Even if you have a sizeable deposit, do a budget, and be realistic about how much you can repay. Be realistic about how much of your income you can contribute to a home loan – it’s better to get a loan for much less than you can afford than to be scrimping and scraping for your repayment every month. And of course consider the impact of economic and global events like COVID-19.
- Pay off debt. You will have more borrowing power if you have no personal debt when you visit your mortgage broker. And when you do get into your home and start paying a mortgage, you’ll be glad you don’t have other loans to repay.
- Save, save and save some more. If you’ve reached your goal of saving $40,000 for a deposit, how about saving for another six months to get $45,000 or more. This will show lenders you are good at saving, making you a more attractive customer. It also means you have more equity in your home right from the start – meaning your interest payments are lower.
- For information on the latest grants in the NT click here
- To check out our Properties for Sale, click here
Get in touch with us for a chat if you would like further information:
Absolute Real Estate
08 8930 6600