The want for private property is one of the oldest in human civilization starting from man & his cave. Were we live, sleep, eat, plus land extending to hunting & gathering. It is a part of our DNA as individuals, couples, families to have some ownership, comfort, feel safe, secure, invested, have our personal space & place. This fundamental need is something that burns inside most of us & drives us to acquiring our own property.
Now it is in many different ways & Questions to be answered…
Off the Plan or pre-owned..?
Apartment, Villa, Town House…?
Existing House or New House & Land package…?
Grants for 1st Homebuyers & finance assistance..?
Do you buy new or pre-owned…?
Strata with management fees, levies…?
The sooner someone establishes ownership of their area or place on this earth the better.
Buying your first home can be both an exciting and daunting experience for young investors.
The first step is becoming as well informed on the buying process as early as possible. Research, planning, laws & grants processes along with professional advice with either a mentor or consultant that deals in property especially 1st Home Buyers. Preparation for the opportunity ahead will serve you well in the eventual outcome.
Having realistic expectations one what, where, when & why you want the property.
The old saying “If you fail to plan, you will plan to fail”
Identifying your ideal property profile and revealing any unexpected costs early will set you on the right track to owning your first home, sooner.
Get your finances in order. There’s no shortcut around this one, generate an estimate of what you’ll need for your deposit…and then add 10%. Generally speaking, the bigger deposit you’re able to save before buying, the better. It is possible to purchase a house with a 5% deposit however you leave yourself a greater chance of defaulting on your loan and banks will have less grounds to be flexible with your borrowing arrangements. It all depends on your capacity to save however as a rule of thumb I look to save at least a 20% deposit.
find a mortgage broker with plenty of experience with first home buyers. They’ll help guide you through the many decisions needed to be made potentially saving you time, money and a whole lot of stress. Saving 20% or more for your initial deposit also means you’ll avoid paying lender mortgage insurance which is a one off payment protecting your mortgage lender against your loan and can be up to $1000.
The real cost of buying a home is far greater than the purchase price. Including lenders mortgage insurance, there are home loan application fees, stamp duty, legal fees, insurance payments, mortgage registration fees and building inspection fees which all add up. Also as a side note to your finances, be sure to assess all items and existing loans you have as these will impact your borrowing and credit worthiness.
Next answer the question, are you buying as an owner-occupier or a pure investor?
It is important to have your end goal in mind as early as possible as there is little room for emotion in the buyer decision making process.
However in saying this, if you’re planning on living in a property your heart is allow a whisper as your current and future lifestyle arrangement should influence your end decision. Take an open mind to inspections and think long term. Be prepared to compromise as there is no such thing as the perfect property. Everyone has their ‘deal breakers’ however keep these clear and be as realistic as possible with them, write them down if it helps.
Finally, if you’re not one for commitment reconsider buying your first home until you’re more comfortable. Hesitation will almost certainly hold you back, the search to finding the right home requires an ongoing commitment and the purchase process being a complete financial commitment.
Once the deal is done, purchase process is completed, you are sitting in the property having well earned drinks contemplating the journey. Any stress, anxiety or pressure you did feel in acquiring the property along with uncertainty will all be worth it. Owning your first home as early as possible in life is one of the best decisions you can make to ensure financial freedom and stability.
The game of private property is one of the oldest in human civilization starting from man & his cave. Were we live, sleep, eat, plus land or areas extending to hunting & gathering. The sooner someone establishes ownership of their area or place on this earth the better. Because it is a fundamental part of our DNA as individuals to feel safe, secure, invested, have our personal space & place.
To protect yourself against the wrong decisions or any misunderstanding of information it is important to seek advice. The best buyers & investors have an advisor, a pro agent to guide them through any process.
:: DIAL DEAN