5 Tips For First Home Buyers
There comes a time when you’ll find yourself faced with buying your first home. Save yourself time, money (and a headache) with these helpful tips!
- Take advantage of concessions for first time homeowners
Buying your first home is always a little daunting. It’s a big investment and potentially the most amount of money you’ll spend, but the First Home Owner Grant exists to lighten the load a little.This government initiative can save you thousands in duties and fees, so it’s definitely worth looking into before you spend your dollars. Each state offers different grants - visit the First Home Owner Grant website for details.
- Don’t underestimate the costs of purchase
Make sure you are aware of all the costs involved when it comes to buying a home. Just because you have a $50,000 deposit and a $400,000 home loan doesn’t mean you’ll be able to afford a $450,000 home. Educate yourself on Lenders Mortgage Insurance, stamp duty, inspection reports and solicitors costs. These are just a few of the extra costs you’ll face.
- Take into account all aspects of a property
It’s easy to get caught up in the aesthetics of a property, falling in love with how it looks or perhaps falling in love with its potential, but before you get ahead of yourself and begin planning your kitchen renovations, stop for a moment and think beyond the home. Is the property conveniently located? What is the local council like? How does the rest of the neighbourhood measure up? Is it an area that has experienced high growth and is it predicted to continue growing? These are important considerations when it comes to buying a home.
- Ensure you get a property inspection
Building inspections aren’t just worthwhile for the obvious reasons - checking for pests, discovering structural faults etc. Identifying these kinds of issues can actually save you money on your home and prevent you from paying full price. Knowledge gained through a building inspection can give you more bargaining power with the seller, which is good for your hip pocket and good for you!
- Stick to your budget
Ensure you have a good understanding of your incomings and outgoings, so you are in a financially stable position even after you’ve purchased your new home. Many first home buyers over-extend themselves and end up struggling to make repayments, wishing they had stuck to their budget. Buying your first home should be exciting, it shouldn’t leave you full of regrets.
For some solid financial advice on what you can realistically afford, contact Stephen Catterall from S&L Financial Logic. Contact details: Stephen Catterall [email protected] or 03 9866 2400.