You might have read our previous post on how to sell your house fast. But what about buying a home? And, in particular, your first one?
What do you do then?
Anyone who has bought a home will attest to how stressful it can be. So, for those of you who are planning to do that for the first time, we have put together this quick guide, to try and make the process seem a little less daunting for you.
Here are 4 things to consider when buying your first home.
Location
We’ve all heard that phrase ‘location, location, location’ before, and whether you are buying, or selling, a property it still remains relevant today.
When deciding on where you want your new home to be located it is worth considering what you do over the course of your everyday life.
How far is the area from where you work? Or where you children go to school?
Does the area have shops or medical facilities nearby? Is there much to do in the way of entertainment or nightlife? What is the crime rate like there?
All these factors are important in narrowing down your search area, which in turn kickstarts a more practical and targeted search for your home.
The house
Once you have determined what area you want to conduct your house search in, it is worth taking the time to really understand what kind of abode is right for you.
Do you want a townhouse, or a single storey property?
How many bedrooms?
Do you need a garden? Or more than one bathroom?
Do you want something brand new or a fixer upper?
Also, it is worth working out if this will be your forever home, or just the first step on the property ladder for you.
If you plan to live there for an extended period, try and map out to what degree your family might grow.
Do you intend to have children? Or is there a chance one of your parents might come and stay with you once they reach a certain age? If so, will there be enough room for you all to live comfortably?
These factors not only help determine what type of property is right for you, it also helps you better understand your price range, as per the market conditions, in the area you are looking to buy.
Get pre-approval for your mortgage
Once you know roughly where you want to live, and how much your purchase is likely to be, it is well worth trying to get pre-approval for your mortgage.
Not only will this confirm to you how much you can borrow, but it should also make you a much more attractive buyer in the eyes of the seller. It will also speed up the general sale process as well.
To understand your maximum borrowing capacity, it is worth making an appointment with your bank manager.
Alternatively, most banks have a Mortgage Repayment Calculator on their website which will give you a guide. To access Westpac’s version please click here.
Professional Services
After determining your location, the type of property you want to buy and seeking pre-approval for a mortgage, the next thing to consider is the professional services you will need to engage.
You will need to hire a lawyer who specialises in conveyancing.
You should also seriously consider engaging a property surveyor to look over the house for any hidden issues that might be lurking within its structure.
Both do come at sizeable fees, but their experience and knowledge can save you thousands of dollars in repair costs, as well as advise you of potential developments or changes to infrastructure – like a major new road, or shopping centre being built next to your house etc.
When determining which specific individuals to work with do your research thoroughly. Only engage fully qualified professionals, ideally who are bound by industry bodies.
Also ask family, friends and work colleagues for a referral and check out Google Reviews of their service.
Be sure to get a full, written quote prior to hiring any of these professional too.
Conclusion
So, there you have it! Our guide of 4 things to consider when buying your first home.
In recent times, record numbers of people in Australia made their first move onto the property market.
With this guide, we hope we have given you some clearer perspective on how you will be able to best do that.
