First Home Buyers
Buying your first home is an exciting but big step, and there is quite a lot to consider.
To make things easier, we’ve put together a list of things to go through when purchasing a property for the first time.
Budget
A good place to start is drawing up a budget of what you can realistically afford, factoring any additional expenses to home ownership. Once you’ve drafted a personal budget, the next step is to talk to a mortgage broker about the best home loan on the market for you and the possibility of home loan pre-approval. Pre-approval makes the lending process a lot easier when it does come time to formally apply for a home loan.
Due diligence
Some contracts can actually be subject to a condition which says a building inspection is to be carried out before going unconditional. What this enables you to do is ensure an inspection is carried out prior to purchasing, and means no other offers are able to be accepted by the sellers during this time.
It’s vital to do your due diligence before buying a home. This means inspecting the property in person if practical, and ensuring the proper building inspections are carried out. Building inspections do incur a cost, however they ensure there is no structural damage or underlying issues.
Buying at Auction
Doing your due diligence is essential no matter the method of sale, however if the home you are interested in is being sold via auction, you will need to carry out building inspections and valuations before the auction, even in the event you are not the successful bidder. This is because sales by auction are not subject to the usual conditions of sale.
Additional Costs
Apart from a home deposit and the ongoing cost of mortgage repayments, there are other fees and charges you should be aware of before buying your first home.
- Lawyers/conveyancing fees It is a good idea to have a property lawyer look over the contract of sale and mortgage documents before signing a sale agreement. A lawyer can also assist with conveyancing, the process of transferring titles. Fees vary.
- Building inspections As mentioned earlier, it’s definitely worth investing in a one-off building inspection before signing a contract or as part of a condition of sale to ensure your potential home is structurally sound and pest free.
- Home and contents insurance Remember that home insurance is an essential part of the home-buying process. Insuring your home is something that needs to be organised and ready to take effect as soon as you settle on your property, not necessarily the date you move in. So make sure you have looked at your options and chosen the premium that best suits your needs and budget.
First Home Buyers Guide
We want to take the mystery out of the home buying experience, so our First Home Buyers guide will cover everything you need to know from start to finish, to help you work confidently through your first home purchase.
Complete the form below and we will send you a copy.