If you’re gearing up to get into the market and purchase your first home, committing and taking the plunge can be both an exciting and daunting experience – we’ve been there! Over the years we’ve guided many people through the process from thought to action and have come up with five non-negotiables. Here are our top 5 first home buyer tips to help kick-start your property journey;
UNDERSTAND YOUR EXPENSES
$ for $, understand your monthly expenses and then calculate how much you can/should be saving and put this amount away each month before paying any bills – don’t worry, you WILL survive on the rest!
ENGAGE A MORTGAGE BROKER
Engage a highly experienced mortgage broker that works with a range of home owners and investors to ensure they maximise your borrowing capacity by assessing at least 10 different lenders and their products.
IT’S NOT ALL ABOUT THE INTEREST RATE
If a bank is willing to lend me $100,000 more than another but has a slightly higher interest rate, more than often I will choose this bank as it will get me into a better location or product. Refer to Tip 1 for holding costs of the loan.
UNDERSTAND YOUR ‘REAL’ REASON FOR BUYING A PROPERTY
Is it because you want to take advantage of the First Home Owners Grant? Is it because you don’t like renting and want to live in your own home? Has your ‘ego’ got in the way and you want to buy in the best suburb but the property values keep moving and forcing you out of that market, hence wasting valuable time out of any market? Or do you simply want to start creating wealth outside of your Super and general savings and believe ‘bricks and mortar’ will give you that wealth?
EXPLORE MAJOR PROPERTY MARKETS
Explore all major property markets around the country before jumping in and purchasing just because you have the deposit to purchase something. Understand that all towns and cities are at different stages on the property cycle and you could be buying at the top of that market.
And let’s throw one more in for good measure…could even be the most important!
DO YOU NEED THE GOVERNMENT’S FIRST HOME OWNERS GRANT?
10% capital growth on a $500,000 investment property will outweigh any government grant if you are using that grant but buying at the peak of the market experiencing little to no growth.
Has this article left you wanting more? Get in touch with us today for a FREE 90 minute ‘Realise Your Potential’ session. You won’t look back.