Whether it’s an investment home, your dream house or a stepping stone in your property purchasing plans, buying your first property is a watershed moment in life. But before you start mentally decorating the kitchen and mapping out spots for your furniture, there are some important things to remember when buying your first home.
Head Before Heart
You may love that rundown terrace house with its two cute rooms and vintage 1940s kitchen in desperate need of renovation, but how much money is this property going to require. What will your needs be in two years time? Are you starting a family? Do you have a car collection in dire need of off-street parking. Before even thinking about purchasing, you should write down your needs and consider the suburbs and types of homes that are best going to meet them… within your budget.
Line Up Your Finance
Your budget is going to determine where and what you can buy so investigate that first. Talk to your banks and mortgage experts early. Also remember first home buyers in some states are eligible for incentives, and these can be even higher if you’re looking to build with a home and land package. Put in a call to experts in new homes to explore your options. Get across what you could be entitled to and factor it in.
With interest rates at record lows, remember to be mindful of overextending. The mortgage on offer may be easy now but what if rates go up? Plan for some worst-case scenarios to ensure you fare well.
Strategy
Remember it’s often called the property “game” so sometimes strategy is called for. Your dream home may be beyond your budget right now, but a little maneuvering may mean you can have it in a few years time. If you pick your first property well, you could end up in a great financial position to buy something a lot more expensive in a short amount of time.
Future Expenses
You may find the house of your dreams or be set on a fabulous building design but you need to know what extra expenses you may be up for. That means getting inspections done on existing property including comprehensive pest and building inspections. If you’re looking to build your own home or purchase a home and land package, ascertain exactly what is covered in the standard building contract. Look for a clear list of contract inclusions and any additional options that would cost extra.
Stalk the Property
Spend time in your potential suburb so you get to know it. What’s your prospective street like at different times of the day? What are the local shops like? If you’re looking at a home and land package, the same applies but also spend time in the display home and visit your prospective site.
When buying a property, most of the work is done behind the scenes. The average buyer spends very little time in the house they will ultimately buy, so do your research, cover your bases and enjoy finding the place you will call home.
