As property prices continue to rise, purchasing a house for the first time may seem like an unachievable goal. If you plan well, this goal may not be as unattainable as you think.
Below are some home-buying tips and smart money moves to help you achieve your dream of owning a home.
1. Draft a Budget and Stick To It
With rising residential property prices, the cost of a deposit has never been higher. That’s why organising your finances and creating a budget is critical to securing your first home. This is typically done by figuring out a realistic price range for a house and then working out the maximum monthly payment you can comfortably afford.
Using an online mortgage calculator is a helpful tool to help determine the payments that you could face when securing a mortgage. From our experience, this government resource is the best calculator to use.
Furthermore, you will need to ensure that your budget includes ongoing maintenance costs alongside mortgage repayments. This way, you’ll guarantee that you can meet your monthly financial obligations.
Another consideration to factor into your budget is if you qualify for any government homebuyer grants. The Australian Government has set up a range of specific State and Territory grants to help first home buyers get their foot in the door. For reference, you can check out the NSW first home buyer grants breakdown by Joust to get an idea of what is available for you as a first-home buyer.
2. Put Down A Non-Negotiables List
Consider your values and lifestyle before you begin searching for properties. Determine the features that will boost your well-being and those that will make you miserable. Following this, create a non-negotiables list considering amenities and square footage. This list will also guide the realtor.
You should view properties to ensure they are right for you. Watch out for essential features like the neighbourhood, electricity, noise, room size, parking, security, drainage, cracks in ceilings and walls, and garden.
A checklist will help you point out any warning signs in the property and help you evaluate if the property meets your needs and qualifies as a suitable home.
When it comes to buying a home, it’s essential to know the exact features you desire in a home. However, be open to compromise as you might not find everything in one house.
You can weigh your options by visiting open houses in a specific area and familiarising yourself with the local market — view properties below and above your budget to determine how values differ with location and features. You can even reevaluate your checklist as you understand what you desire and what’s in the market.
3. Hire An Adept Realtor Who’s Familiar With The Market And Area
Your real estate agent can either make or break your home-purchasing experience. It’s advisable to get an agent referral if you’re sure of where you want to stay.
Consult your family or friends in that area and ask for referrals. Alternatively, you can use real estate websites with ratings on real estate agents. You should also consider getting an experienced realtor who knows the area well and pays attention to details. A good agent is an excellent time-saver, and they will get you a suitable home and guide you through the entire negotiation and purchase process.
Seasoned realtors also have contacts for real-estate attorneys and loan officers. They can provide helpful tips like having a mortgage pre-approval letter on hand from the bank to prove to sellers that you’re a genuine purchaser.
4. Look At Comparable Properties Around To Get A Pricing Idea
As a first time buyer, you should check out comparable homes in a preferred location to have a picture of the price range. Visit real estate websites to search for homes in the area you want to live in and determine the price range.
Once you have a budget and identify homes you can afford, you can start searching for the right property for you. Start the search with online home websites and filter by location and the features you desire. You can then reach out to the estate agent to help you find listings and offer you expert advice and exclusive viewing before the property goes online.
If you’re searching in a specific apartment building, find out the price of other houses in the building. Through this, you’ll have a clearer picture of what the starting offer should be when it’s time to bid on your prospective home. Be active and research extensively, and stay in touch with your real estate agent.
You should also ask the realtor for the anticipated closing costs. The costs that don’t include your moving and personal packing costs can differ widely. Usually, they comprise the cost of enlisting a real-estate attorney to handle the buyer-seller contract and a property appraiser to assess the home prior to sale, which the buyer usually pays.
5. Get A Survey
You need a surveyor before buying a property to ensure what you’re putting your money into. The homebuyer survey evaluates a property’s value and general condition, pointing out the maintenance you should do urgently.
Building surveys review every property aspect, including the exterior, interior, amenities and materials used. The survey is recommended for buyers planning major works since it assesses all faults and the potential repair costs. Specific defect surveys analyse particular structural issues within the building and provide advice on correcting them.
Bottom Line
These tips will guide you through buying your first home and get you on the property ladder. To reiterate, you need to ensure that you can afford a home. Search for properties offline and online and view them to ascertain they feel like home before making the final decision.
