Buying a home can be both a rewarding goal, at the same time, a challenging project that needs time, effort and careful attention. This is because buying your first home is one of the biggest purchases you will ever make. Not to mention, the stress that comes with the preparation, budget and negotiation.
Fortunately, there are ways to avoid such hassle if you know where to start. Seeking the help of house property agents is essential because these professionals know the ways of real estate transactions. And yes, there are also numerous tips and guides you could use to ensure success in your purchase. If you’re about to buy your first home, consider these tips.
1)- Create a Budget
When it comes to buying your first home, there’s one rule to follow: do not purchase a property beyond what you can afford. Thus, creating a budget is crucial if you don’t want to deplete your finances. No matter what type of home you want to purchase, you will need funds for the deposit, and you need a budget to achieve it.
A good budget keeps you track of how much money you have and how much you spend. It also helps you to spend within your means and encourages smart spending and saving habits. Creating a budget might be exhausting, but once you have organized it, it will be easy to follow through.
2)- Research the Market
The real estate market is a volatile market where prices go up and down, and where location is everything. Likewise, finding the right home is no easy task. If you want to invest in real estate, you have to know the recent trends and the property you could afford. Hence, whether you are looking for a home to live in or just an investment property, explore the market.
You will want to research important elements, such as access to transportation and the availability of schools, shops, hospitals and so on. If you are looking for a place where you can raise your family, consider Balmain real estate properties.
3)- Evaluate the Upfront Costs
Buying a home is not just about getting the best location, but you also have to assess the upfront costs. For one, pay attention to the purchase fee. Most people can’t pay the property straight away, which is why taking out a loan is essential. With that, lenders often ask for a 10%-20% deposit.
You also need to consider loan fees, lender’s mortgage insurance, government charges, legal and conveyancing costs, building pests and inspection and moving expenses. These costs will highly depend on your lender, contractor and other professional services who have helped you through the buying process.
4)- Consider Pre-Approval Loan Option
Property listing is a great way to check for incredible properties. As a buyer, you might be tempted to go ahead with the purchase. However, it’s advisable to seek the help of a professional mortgage broker and apply for a pre-approved loan beforehand.
One of the benefits of getting a pre-approval loan is to help you understand what you can afford. You might have found the right property, but it might also come with a hefty price tag. With a pre-approval loan, you already know if you can afford it or not.
Getting a pre-approval loan will also speed up the process of buying your home. Once you find the right house, you can already make an offer. The last thing you want is to find out that it has been sold to another because your finance took too long.
5)- Know How Much You Can Spend
Determine how much money you can access, either by salary, savings or other financial assistance. This will allow you to cover the upfront costs and other financial commitments you may need to pay.
6)- Consider Financial Assistance for First-Time Home Buyer
In Australia, first-time home buyers have the opportunity to receive financial assistance and grants. If you need assistance, there are several options to choose from.
First Home Owner Grant. The government offers this grant to eligible first-time buyers. If you qualify, you will receive a grant, depending on which state or territory you’re purchasing your home in.
Stamp Duty Concessions. This is an incentive given by certain state and territory governments. Still, depending on the state or territory government, the stamp duty may be removed or reduced.
New Home Guarantee. The Australian government develops this program to assist first-time home buyers in their lenders’ mortgage insurance (LMI) payments. Usually, buyers will have to comply with the 20% deposit to pay the LMI. If you qualify, you will pay as low as a 5% deposit.
First Home Super Saver Scheme. Under this option, first home buyers might be able to withdraw their voluntary super contributions amounting to $30,000 for individuals, and $60,000 for couples. These savings can then be put towards a home deposit.
7)- Negotiate the Price
An important rule is to stick to your budget. When you’re ready to buy your home, the seller expects you to negotiate for the price. But the best thing you can do is to be ready to present your buying price. This means that you have to put your finances in order. Be very clear about how much you can afford and use your pre-approved loan. Without solid proof of funding, the seller will likely move on to the next buyer.
8)- Find a Good Real Estate Agent
A lot of buyers believe that they can navigate the real estate market on their own. Unfortunately, this is easier said than done. Finding a qualified real estate agent is your best option if you are a first-time home buyer. Realtors will not just help you look for the best properties, but they can help you navigate throughout the buying process. They are experts in negotiations, real estate interest rates, property values, and have a wide range of networks to ensure you get the best deal.
Buying your first home is a big process, but it does not have to be complicated. As long as you have done your preparation and keep on top of the relevant information during the process, you’ll find your perfect home.