1 - Know your budget
Your first home is an important start on your property journey and it needs to suit two basic criteria – your budget and your personal needs.
When it comes to your purchase budget, our Borrowing Power Calculator can give you an idea about what you can afford to borrow. Then check out what the regular repayments would be a loan of this size.
FIRST HOMEBUYER TIP
Calculate every cost. The purchase price of your home is part of your buying budget. You’ll also need to factor in stamp duty, legal fees, removal costs and home and contents insurance and any other costs. Allow for council rates if you buy a house or strata levies if you chose an apartment. 2 - Decide a location – weigh up work, lifestyle and future growth
No home is perfect, and it’s worth being willing to compromise. If you want inner city living, are you happy with an apartment? If you prefer a large garden, would a long commute to work bother you?
Bear in mind, your first home is also a major asset, and the location you select can play a key role in how well it performs as a long-term investment. Homes located closer to city centres can generally experience higher rates of capital growth than outer suburban properties - the flipside is a higher price tag. Be flexible though. If you chose an inner-city home you may not need a car, and that could free up cash for extra repayments.
3 - Research the market
There is no shortage of property websites that can give you up to date information about sales listings, market demand, and a history of selling prices in your area – some for free, some at a cost.
Nonetheless, there’s nothing like heading out to open home inspections and auctions to see what your money will actually buy. It’s also an opportunity to make contact with real estate agents -some properties are sold before they are openly marketed to the public.
4 - Stay focused on what matters
By now you’re ready to shortlist a few places. When you look at homes, focus on the essentials. Don’t be distracted by the owner’s fabulous collection of artworks (they’ll be gone when you move in) and look past dodgy décor or grubby floor coverings. Fresh carpets, a lick of paint and a new kitchen bench-top can all be added later. What you can’t change is a home’s location, layout or outlook.
5 - Check out the property at different times
If you’ve found a home you’re interested in, aim to visit the place at different times. The last thing you need is to discover the street becomes a car park for mid-week commuters or that the family next door are drumming enthusiasts.
6 - Be ready to act quickly once you find the right home
Quality homes in good locations that are sensibly priced tend to sell quickly. Sure, take some time to think things through before you make an offer but don’t miss out on a place because you need to find a solicitor/conveyancer or arrange loan finance.
Having a conditional approval from Heart lets you act swiftly and with confidence when you find an appropriate property that ticks all the boxes. It could be the difference between owning the right home and missing out to someone else.
Talk to us on 1300 861 143…
Disclaimer
This information is current as at 23/02/18.
This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.
