We’re looking at a market right now where many would-be first-time home buyers are choosing not to buy a home due to loan costs. Yet, before you decide on ending the dream of owning your own home, there are a few things to consider that could very well change your mind!
Buying a home is probably one of the most important things you’ll do in your life. That’s why it’s crucial to find all first-time home buyer tips you can to ensure you set yourself up for success.
Let’s now take a look at 5 of the best first-time home buying tips you shouldn’t ignore! After reading this, you’ll have confidence through the right knowledge to help you find your dream first-time home.
Table of Contents
1. Learn About Upfront and Ongoing Costs
As a first-time home buyer, you must learn about all the potential upfront and ongoing costs you might face. Without doing this, you can end up experiencing unexpected financial shocks down the road.
The first and most obvious cost to consider is the purchase price. Paying in cash gives you a strong edge over other people bidding to buy the property.
If you need a loan, then you should expect to pay a deposit of between 10-20% or more depending on the provider and your credit score. You will also have to pay a loan application fee to cover the lender’s administration costs.
You might have to also pay your lender another fee to cover their lender’s mortgage insurance. Lenders will often ask for this if you put down a deposit below 20%. The reason for it is that if you fail to pay your mortgage, the insurance will cover the lender for lost payments.
There are government charges that you will have to pay like stamp duty. If you get a mortgage, you will have to pay mortgage transfer and registration fees too.
Furthermore, there are conveyancing and legal costs to factor in along with various potential building inspection costs. Then, you will have all the costs associated with moving such as van rental or professional help.
Once you have moved, the ongoing costs may be loan repayments and interest charges over decades in most cases. Plus, there will, of course, be utility costs, potential council rates, and contents insurance to pay out over time.
2. Define Your Property Location Requirements
It pays for any first-time home buyer to clearly define their property location requirements. Without doing this, a buyer may end up committing to a property and then later find out that it doesn’t fit the needs well at all!
Think about how far you will be away from friends and family in a specific property. It might be you are far away but have excellent transport links which make it easy for you to visit them from time to time. You should also think about schooling, shops, and distance from your workplace (if you’re not a remote worker).
One of the most important things is knowing whether the area you live in has house price growth potential or not. You can learn about this by doing some research online or even asking locals and potential neighbors about the matter to see if they have any insights. Also, local real estate agents should have a solid grasp of the matter.
3. Find Out if You Qualify for Financial Assistance
One of the best home buyer tips we can offer is to ensure you check out financial assistance options. You might be surprised at what you can qualify for!
For instance, there is something called the First Home Owner Grant. You may also be able to get stamp duty concessions as a first-time buyer. Plus, there is an Australian government program called the New Home Guarantee you can check out.
Then there’s the First Home Super Saver Scheme (FHSSS). This scheme allows you to withdraw super contributions of up to $100,000 as a couple or $50,000 as an individual. The idea is you can put this money towards a deposit for a home.
4. Learn About Various Loan Types
It’s possible that you are looking for loan tips for home buyers right now given the state of the market. You might be wondering how to get home loans that make sense with the property prices dropping while many loan cost fees are doing the opposite.
If so, we recommend this definitive guide on how to get home loans. The guide takes you step-by-step through things like fixed and variable home loans. You’ll also learn how to recognize any hidden bank fees.
When you take the time to properly research the home loans available in Australia today, you may be surprised at what you find. Terms are slowly changing to suit the market better. And, with added financial assistance, it could make perfect sense to buy your first home now, rather than waiting any longer or ditching the idea altogether!
5. Take Home Inspections Seriously
make sure to carry out a professional home inspection of any property you are interested in. Then when the results come back, ensure you take a detailed look at them to make sure the home is worth your time and money.
If you fail to carry out an inspection and buy a property, later down the line you might have expensive issues to deal with. For example, the property might have looked solid from the outside, but later you might find out that it is termite infested.
Some of the Best First-Time Home Buyer Tips
We’ve mentioned some of the best first-time home buyer tips for Australians above. We hope you can make the best use of this advice and good luck in finding the right property for you!
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