Top considerations for first homebuyers

houseFirst homebuyers have been left disappointed by the latest Federal Budget, with housing affordability not looking to ease any time soon. However, there are still plenty of Australians working hard and looking to break into the market this year.

As a first homebuyer in Australia, there are a lot of things to consider, such as where to buy, whether or not to build, and who to use for finance.

Here are some decisions you’re likely to face on your first homebuyer journey:

Build new or buy established?

Building a brand new home may sound appealing, but there are plenty of advantages to buying an established home too – such as being able to move straight in and having the character and charm of an older property. There are pros and cons to buying both new and old so you need to consider what you will be happy with now and in the future and what works within your budget and the area you want to move to. 

Buy to renovate?

You might like a certain area but are not able to afford a new or modern home there. You might however be able afford a home in need of some repair. If you’re planning on going down the renovation road, consider whether the house is liveable to begin with because you might not have a lot of money for extensive renovations initially.

How big of a deposit will you need?

First homebuyers in Australia all have different goals and requirements so it’s hard to know when you have saved enough to qualify for a home loan. The best thing you can do is make regular contributions to a savings account and try to make your savings balance as strong as possible. A bigger deposit will give you more options when deciding on a home loan and provide you with more property options.

What type of home loan should you get?

Again, every first homebuyer is different and there is no one size fits all answer. However, since this is your first home loan it is well worth chatting to a good mortgage broker who can explain the different types of home loans available and what features you might want or need. If you would like to talk to a mortgage broker, the team at Professionals Finance can help.

Take your time deciding and saving for the home you really want. Buying a property is likely to be the biggest financial decision you will ever make, so make sure you’re confident in your decision and get as much help and advice as you can on your journey.