You have saved up some money for a couple of years and now you have finally decided on buying your own home for the first time. But the question is where do you start? Buying a home will definitely be the greatest investment that you will make and with the appropriate preparation you will surely be able to get the house you long dreamed of.
This list of guidelines will help you in the planning process, guide you where to begin, and give you an idea of the necessary aspects you may need to enquire and verify.
Selecting your Home Loan
Choosing your home loan is as important as choosing a house. You can acquire your loan from any financial institution such as banks and other small loan providers.
Loans can be quite confusing since it comes in various choices such as a variable rate, fixed rate, and no-deposit loans and so on.
Most new homebuyers ask the assistance of a mortgage broker to avoid confusion and will help you assess the appropriate loan.
But for those who want to do it alone, you would have to extend your patience for extensive research and enquiries.
Selecting the Appropriate Area to Buy In
It all depends on personal preferences, although there are numerous tips which can help. Consider the places you would like to live in and how much you will need to spend on it. In case you cannot afford to get the area you desired, think about the features of the place you prefer and list them down.
Does the place have schools? Cafes? Or perhaps a beach? Just do a little research, who knows you might find some other location which offer you other favourable things and which may be available at a more affordable price.
Which Unit Is More Practical, An Apartment or A House?
Perhaps you already have thought about which type of unit you want to get as your homestead. But there are still lots of things that must be considered. If you are planning to buy an apartment better think first about buying a brand new home and you will be glad how the Federal Government will give you a First Home Owner’s Grant.
One downfall of having an apartment is the fact that you have to pay continuously for the strata costs and you cannot make building extensions which you can easily do if you get a house instead. If you’re seriously interested on getting a new home try to consider relocating at a much less rural area so you will have the chance of discovering a new place outside the suburbs.
Plan your Budget
You will know how much you can afford to pay for monthly repayments. You need to contribute greater than 30% of your monthly recent tax income to your home loan, but you need to understand that there are other charges that you need to pay for. One important factor to consider here is that the financial institutions and banks will have to compute your capability to pay up to 2% higher than the existing rate just in case there is a sudden increase in the rates of interest.
You must be aware and be familiar with the “buffer” as this can affect your capability to protect your finances. There are initial fees that you need to include in your budget such as mortgage insurance, loan application charges, building inspection fees, solicitor fees, stamp duty, etc.
Take some time
Do not immediately seal the deal once you see the first awesome place with a bright and sunny courtyard. Aside from the property itself you must also consider other factors such as your neighbours, accessibility to transportations including buses and trains, and traffic noise or plane disturbance. The most probable solution to get a good feeling about a new home is to go and visit the area at different days and different times.
You might find that the area is relaxing the entire week but the downtown community starts to make some noise every Saturday morning. Take some time to visit the nearby potential home location and list down the issues which happens to arise every now and then. Compare your list to your other options and assess if it fits your preferences for a new home.