Purchasing your first house is an exciting project, but it can also be daunting. The best way you can turn your dream into a reality is to plan things step by step. Read on to know our simple list to help you become a property owner.

List For First-time House Buyers

1. Decide if you’ll live in the home or if it is just for investment

The first thing you’ll need to decide is the purpose of buying your first property. Do you want to live in it, or buy it as an investment property?

2. Research the market

Next, you should research real estate market trends. Create a shortlist of what you would like to have – the number of bedrooms, location, parking, and the kind of property. Then search online and speak to local real estate brokers. Attempt to find out:

  • Factors that are responsible for properties to sell for lower and higher than average prices.
  • Current selling prices in the areas where you desire to buy.
  • Overall market trends – are prices decreasing or increasing?

3. Find out what amount you can borrow

After researching the market, it’s time to find out how much home loan you can borrow. You can use an online-calculator, but it is better to discuss your borrowing capacity with your mortgage broker or a bank.

4. Calculate your repayments

Deciding how much to borrow includes factoring in fortnightly or monthly repayments. It’s also important to discuss this with your lender directly and take the time to budget not only for your repayments but all the other usual expenses you’ll have to cover, such as groceries, bills and long-term savings goals.

5. Consider other upfront costs

Majority of first-time house buyer make the mistake of only focusing on their deposit, only to come to know about the other upfront costs associated with buying a home at the last minute. Remember to consider:

  • Stamp duty – To find the total for your property, use a stamp duty calculator.
  • Lenders mortgage insurance. If you want to borrow more than 80 per cent of the price of your property, you’ll also have to consider lender’s mortgage insurance. 
  • Other government changes and fees. 
  • Legal/conveyancing fees.
  • Building and pest inspections.
  • Money for any important repairs.
  • Moving costs.

6. Check whether you can access the first home owner grant

You’ll be happy to know that the Australian government still provides grants to people purchasing property for the first time using the first home owner grant (FHOG). However, the amount available for first house buyers and the regulations for things such as kind of property and maximum purchase price are different over states and change every year.

The best way to determine if you are eligible is by having a discussion with your mortgage broker or bank, who can assist you in filling out and lodging your application. 

7. Find out the type of loan you need

All home loans are not the same. There are variable loans, where the interest rate is not the same, and fixed loans, where the interest rate is fixed for a particular period. You can also choose split loans, in which you can fix the loan partially and keep the remaining at the variable rate. Contact us today to determine what type of loan might best suit your needs.

8. Prepare for private sales and auctions 

Auctions have become common in numerous locations across Australia. Therefore, it will be helpful for you to take the time to attend a few auctions and see how the process works before you begin bidding. Numerous people will provide you advice on auction strategy, but the key factor here is deciding your budget and sticking to it.

Private sales, also called private treaty sales, can also include negotiation with the seller. Again, it’s essential to know your market properly so you don’t give a very low bid or pay more than the home is actually worth.

9. Consult a mortgage broker

You’ll need a mortgage broker’s help to figure out some of the above things. Our experienced mortgage brokers can give you the best advice, look at all your options and help you select a competitive home loan.

No matter your budget or the kind of property you are looking for, being prepared and consulting a mortgage broker are the key steps to buying a dream home.

At APW Finance, our mortgage brokers help you to make the home loan approval process easier and find the right loan that best fits your needs and goals. Get the perfect loan package with our home loan specialists today.

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