Buying your first home is one of the most exciting things you will do, you will finally have a home to call your own. It also allows you to take the first step up the property ladder which if managed correctly can be a source of wealth creation, retirement income and a legacy you can pass to your family.
As this is such an important step for you, it is important that you make the correct decision, here are some tips to make the process easier for you.
1. What can you afford?
This is your first step, contact a bond originator and ask them to pre-qualify you, this will establish how much you can purchase for. Another important point to consider is that interest rates fluctuate so make sure that you factor that into your calculations. The best advice is purchase below what you can afford, this will provide you with breathing room should interest rates increase.
2. Deposits and costs
T The bigger deposit you can put down the better, this will reduce your monthly instalment. Additional costs that you need funds for are transfer duty and transfer costs as well as bond registrations costs. If you do not have these costs upfront chat to the bond originator about applying for a 105% bond, the additional 5% will pay for a large portion of these costs. Make you sure you estimate additional cost such as moving, electricity and water deposits and sundry items.
3. Choose what type of property suits you
Establish what type of property that suits your lifestyle. Sectional title units and apartments have become ever more popular; however, they have certain restrictions and additional cost in the form of a levy. Freehold houses offer more freedom but do not suit someone who want a lock up and go lifestyle. Safety and security are points to consider when purchasing.
4. Research, research, and research
We are fortunate to have information at the tips of our fingers, make sure you do your research into the area that you want to purchase in, establish what is the going rate for property in the area, other key points to consider are the locality of shops, schools, and freeway access.
5. Deal with a professional
Choose a real estate agent carefully and let them advise you on the process of purchasing a home, task them with finding the perfect home for you and guiding you through the legalities of the transaction.
Most of all enjoy and have fun finding your 1st home! Enjoy many years of ownership