2018 Top 20 First Home Buyer Tips to make buying your first home easy!
For most first home buyers purchasing your first home is an overwhelming one. To combat that we’ve got together 20 of the best tips to assist in you getting prepared. These tips will push you along the path to becoming the next first home buyer in your family.
The first thing every first home buyer should do is investigate government grants. See what you can take advantage of or are eligible for.
Thousands of dollars in government grants are available to first home buyers. This can speed up the process for first-time buyers in search of the great Australian dream.
Navigating as a first home buyer is an exciting but daunting process for first-timers.
So we’ve got together 2018 top 20 first home buyer tips to help make this simple for first time buyers:
1. Strict and careful budgeting for the future is a critical first step. Then be realistic, not only about your current financial situation but also about future changes. From there work out how much deposit and monthly mortgage payments you can afford. That’s without it stressing you out.
2. Always take into account that any extra costs can increase the size of the deposit you will need to save for. For instance, conveyancing, bank fees and mortgage insurance can cost a lot. Well over $10,000 and need to be factored in.
3. Domain chief economist Dr Andrew Wilson commented on this point. He stated Australian capital city housing markets “they are robust. They are reliable over the long term with significant financial advantages for home-ownership. Particularly through tax benefits and breaks”.
To speed up getting into the market he recommends buyers look to broaden their search criteria. That’s to get themselves onto the property ladder. That can mean looking out a little further than you might have expected.
4. Many free household budget calculators are available online and can help.
But, loan calculators on most bank and finance websites are general guides. You should always consult your mortgage broker before committing to anything.
5. You can apply for certain government grants and potential stamp duty concessions. These are available to all first home buyers. These incentives can and will vary from state to state so best to check this with your bank or broker.
6. Victoria now offers a $10,000 first home owner grant and transfer fee. This is sometimes referred to as stamp duty or just duty) concessions. NSW now offers $10,000 plus also transfer fee concessions. Conditions often apply, so be sure to check with the state revenue office. Otherwise, a great idea is the government website in your local state or your mortgage broker.
7. Finance or mortgage brokers are a powerful ally.
They provide expert advice on a range of different borrowing options available. They are very helpful and knowledgeable and will do the paperwork for you. This is all whilst guiding you through the loan application process. that alone will save you many hours and headaches.
8. Mortgage Brokers have to be licensed to operate. So feel free to ask for qualifications and check them out.
9. You may wish to ask your broker they will also be charging you a fee to see if you are up for any upfront costs. Be aware that some brokers can be limited to a particular range of products or lenders. As are your local banks, that may or might not suit your requirements or be the best option for you.
10. If you’re buying an established property then there are many moving parts.
You’re going to have to learn many skills to avoid getting this wrong. Learning how to value a property, make offers and negotiate. You’re going to have to learn many skills to avoid getting this wrong. Learning how to value a property, make offers and negotiate are required. That’s if you want to make sure you don’t make costly mistakes when dealing with agents. Help is now available in the form of the First Home Buyer Buddy. That online system has been designed to save first home buyers money, time and stress.
11. The community you live in will have a big impact on your life more so than the house you choose to live in. Explore locations and talk to existing residents so you understand what you want and need in a property.
12. Be sure to look at the local amenities; those that are there now but more importantly planned for the future.
Are there train or bus services for people to use? What’s the closest shopping centre or local shops to you? Are there education and recreational facilities like Schools and parks? Other factors include the level of quality of the community design. Including local parks etc. It’s a good idea to think about what you need both now and in the future for you and your family.
13. If it’s a new home you want. Work out what type of home you want by looking at a lot of the display homes. Be realistic about the size of the home and the number of rooms you need to be happy. Check cost-saving opportunities like fittings/finishes etc to cut those expenses.
14. Once you know what’s important to you, you can decide what option best suits your lifestyle and budget. There are pros and cons to each. That may be an established home or unit, or some land to build on, or a newly completed home, apartment or townhouse.
15. If you’re buying land make sure the land you choose will suit the design and specs of the home you want to build. Be sure to review any planning provisions/design guidelines that may be applicable.
16. Be sure you understand if there are “extra” site costs that may be incurred. E.g, some sloping or narrow blocks. That may mean extra costs for retaining or excavation work needed.
17. Be sure to do your research and find the right builder for your job.
Check out display homes just built and a few years old. This is to check the quality. Also, research builders online and speak to previous clients who used their services.
18. For the first home buyers looking to build a sustainable house there are options. The Master Builders Australia (MBA) and the Housing Industry Association (HIA) can help. They train builders in these practices. Choosing a builder with this training will be a great step towards reducing your energy needs. Along with doing your good part for the environment.
19. When building a new property, be sure to check the building specifications. As in what fittings, fixtures and works are included and what is not as you can be caught out? As an example, make sure you know if floor coverings like carpet are included or extra? Are window coverings like blinds part of the deal?
20. Be sure to leave some funds for landscaping as you want to be able to finish the property off well. If you end up building a new house, you will likely need a bit of extra money to create a nice outdoor garden.
That’s it for 2018 top 20 first home buyer tips.
For more helpful first home buyer tips, tricks and techniques visit the First Home Buyer Buddy to ensure you’re a well educated and smart first home buyer.
What is the First Home Loan Deposit Scheme AND Are You Eligible? 🧐 In a nutshell, the First Home Loan Deposit Scheme will allow eligible first-time buyers to enter the property market sooner, by providing
First Home Owner Government Grants. Are You Eligible? It’s dependent on a few factors and varies from State to State. However, in general, the following applies. Your age (you have to be 18+) You, your