5 Essential First Home Buyer Tips


5 Essential First Home Buyer Tips

With interest rates in Australia at record lows, you may be thinking about buying your first home.

But before you start attending open for inspections and auctions, here are 5 things to consider. 


1 Do your research before you start looking for your home

You may have heard that the most important thing in real estate is “location, location, location!”

So before you start your house search, sit down and work out where you’d like to live and for how long.

Think about things like:

  • When you’d like to start a family. If it’s in the next few years, your home will need to be big enough, but also be close to childcare centres, parks and schools.
  • How long you’re willing to drive or commute to work?
  • How many shops, cafes and restaurants would you like to be close to?
  • Would you like to be able to walk to the local parks?

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2 Get clear about the real costs of buying your first home

When you’re buying your first home, you may not be aware there are extra costs to consider. If you’ve got $60,000 deposit saved and you’re looking for a house that’s around $660,000, you may think that a $600,000 mortgage will be enough.

Here are some extra things you need to budget for that will increase the costs when buying your home:

  • Building inspection reports
  • Owner’s corporation costs (if you’re buying an apartment or unit)
  • Bank valuation fees
  • Transfer and mortgage fees
  • Conveyancing and legal costs,
  • Stamp duty (varies from state to state with first home buyer rules), and
  • Mortgage insurance

Also consider making a budget for renovations that may need to be done before you move in.

Get quotes for changing locks, floor sanding, new carpets, new curtains and security doors and window screens.


3 Before you get a mortgage, set up a mortgage payment plan

If you’re thinking about buying your first home, you’ve probably been saving for a deposit. Setting aside money regularly into a savings account is good practice for making mortgage payments.

But are you saving enough each week or fortnight to replicate what your mortgage payments would be?

Sitting down and estimating how much your mortgage payments will be and then aiming to save this amount, will help you track whether you can afford this size mortgage.


4 Take your time – never get pressured

Buying your first home will be the biggest investment you’ve ever made – so make sure you never get rushed into something that doesn’t feel right for you.

Don’t ever feel pressured by estate agents to make an offer before someone else does.

Every day in Australia, there are new properties listed for sale, so don’t feel like you’re going to miss out!


5 Get financial advice

Before you buy your first home consider making an appointment with a financial advisor and planner.

They will be able to help you with budgets, give you advice on what you can afford and what type of mortgage you should consider.

We’d love to help you, contact us here for a complimentary chat.

The advice provided in this blog is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. For our full disclaimer, please click here.