Top Tips for First Home Buyers

 

Jared Stone, Sales Manager for Homebuyers Centre in Perth, shares his top 10 tips for first homebuyers.

1.  Find out what government assistance is available.  The federal and state government has introduced many incentives to encourage people to buy their first home. You may be eligible for the First Home Owners Grant.   Find out what government assistance you might qualify for.

2.  Get pre-approved for your mortgage first.  Before you start house hunting, it's imperative that you establish a budget. To do this you need to speak with an experienced and accredited finance consultant who will be able to advise you what budget you can work to. As finance plays an integral part of buying a home it is recommended you get your home loan pre-approved before you start looking.  You can find out how much you can afford by engaging an experienced and professional finance consultant.

3.  Be realistic.  Remember your first home is the first step to your financial future so it is not going to be your last. The average person buys a new home every 3 years.  By now you would have established a budget and have some idea of your likely repayments. Ensure that this repayment is affordable and you have enough disposable income in reserve every week for those unexpected costs.

4.  Create a wish list.  Before you start house hunting, think carefully about your housing needs as opposed to your housing wants. You might want a five-bedroom house with a pool and tennis court, but if your budget doesn't stretch that far you could be in trouble. Write a list of everything you need – not want – in your new home and stick to it. 

 

5.  Know what you like.  Many of us have an idea of the type of new home we want. But are not really sure where to start. Selecting a location is the first thing you must do before you start looking at home designs. The old adage location location location still proves true. A home is only an improvement to the land so securing the best possible location that fits within your budget is paramount.  Find out where the best locations are which suit your budget.

6.  Keep your emotions in check. Buying a home can be an emotionally charged experience so don't waste your energy looking in the wrong direction. Only look at homes that are within your budget range and have the features you need.

7.  Assess your situation.  Once you have been pre approved and found a home design that you like, the next step is to apply for your formal finance approval. Your finance consultant will take care of this for you.  It is important to remember that any changes to your financial circumstance, for example a change in employment or taking out additional loans, will dramatically affect your borrowing capacity. Always discuss with your finance consultant before you make any changes.

8.  Check your finance options. There are several new and innovative finance options available to assist most people into a new home. A lot of these new product are not advertised so its imperative that you speak with an accredited finance consultant who can point you in the right direction. They can provide you with information and tailor a finance package that will suit your budget and circumstances.  Want more information on your finance options?

9.  Reduce the amount of bank interest you pay. By simply making fortnightly home loan payments instead of the regular monthly repayment you can save a significant amount of bank interest. By paying fortnightly, you make the equivalent of 13 monthly repayments a year rather than the 12 you'd make paying monthly thus reducing the interest payable.

 

10.  Don't wait!  Get into the property market as soon as you can - hesitating rarely works in your favour.  Many first home buyers don't believe they can afford a new home. But with government assistance, no deposit home loans and affordable home and land packages, the dream of home ownership is still within reach.