What to consider when buying your first property
Making the decision to buy your first home is an exciting one, but there are a number of important factors that you need to consider first.
Is now the right time?
Purchasing your first home is a huge commitment to make, especially if you’ve spent the rest of your life living with your parents or in rented accommodation.
It’s important to take a look at your current position and your plans for the immediate future to ensure that buying now is the right decision.
Is you deposit sufficient?
It’s all good and well to save up 5% of the purchase price of your first home, but you need to keep in mind the other costs that accompany a property purchase.
Costs that you need to factor in include stamp duty, mortgage establishment fees, legal fees, property inspections and more.
Your real estate agent or mortgage broker may be able to assist you in determining these costs.
Can you afford the repayments?
Mortgage repayments are one of the largest expenses for most households in Australia.
Whilst your bank will undertake their own calculations before lending you any money, it is important that you do your own budgeting to ensure that your first home isn’t going to get you into trouble.
Your mortgage broker will be able to assist you in determining how much you can borrow, however it is also a good idea to speak with your financial advisor about budgeting.
Is the home appropriate?
The process of buying and selling a house is not a cheap one, so it’s best to buy a property that you don’t expect to need to sell within a short timeframe.
It’s worth spending the time considering what you need in your first property. Is it a family home out in the suburbs, or a smaller apartment closer to the city centre?
Searching for your first home is certainly an exciting time, but you need to spend the time finding the right type of property rather than jumping onto the first option which comes up.
There is no shortage of sources for advice on buying your first property. From your parents and friends to financial advisors, real estate agents and mortgage brokers, everyone will have an opinion.
By obtaining the right advice from the right people you can help to ensure that your first property purchase is a successful one.