Buying for the first time is often a daunting experience. There’s lots to think about, such as how much you need to save, what type of property to buy and where, and a whole list of things that you might not have ever considered before.
So where to begin?
Well luckily buying a home isn’t actually as tricky as it seems and with a few key pointers you’ll be a buying expert in no time.
Choosing a home loan
When buying you will first need to think about how you plan to pay for the property, and unless you are fortunate enough to already have all the money you need in the bank, you will need to take out a home loan.
There are plenty of home loan options available and the one that will work best for you will depend on your individual situation. You will need to think about things like interest rates, fixed vs. variable rate, account features and how much you are prepared to borrow.
You can do a quick Google search to compare home loans but if you are a first time buyer it’s a good idea to talk to a mortgage broker, or arrange a meeting with your bank, to at least get them to explain the buying process and how much you are qualified to borrow.
Remember you don’t need to choose the bank or person you initially chat to, but it is a good idea to get out there and arm yourself with as much information as you can so that you know your financial position when you are ready to make an offer.
Should you buy a new or established home?
A lot of first home buyers are interested in buying a new home so that they can take advantage of the $10,000 First Home Owner Grant. This grant can be a helpful leg-up in affording a property, but it is only available for the purchase of brand new properties, so it may still be a cheaper and easier option to buy an established home.
First homeowners are also eligible for stamp duty concessions on new homes. For more information about homebuyer grants in Victoria, head to www.sro.vic.gov.au.
Where do you want to live?
Location is the one aspect of a property that absolutely cannot be changed, so buy in an area that you can see yourself living in for a long time and that will hopefully offer good capital growth. Other things to think about when deciding on location is whether the area has good schools, decent public transport or is close to your work or anything else that you might find important.
The Professionals Arbee Real Estate team are always happy to have a chat to any first time buyers who are unsure about the buying process and where to begin, so please feel free to give us a call.