Finance: Sit down with your Bank Loans Officer or an Independent Mortgage Broker, you need to know what is required to get a home loan, what loan capacity you have and which loan product suits your circumstances better. A consultation with a loans expert should be able to answer all your finance questions.
Market: Make sure you have checked what properties are on the market in your area of choice, visit as many open homes as possible to get a feel for what is on offer and what is the price expectation, attend as many local auctions as possible to see what homes in your local area are actually selling for. Obtain local property sale prices from a local real estate agent or via the internet. You need to know what homes are selling for in your local area so that you can make an informed decision on price for any property you maybe interested in, you can never have too much information.
How Much Deposit
In general when you are making a real estate purchase you will need to put down a 10% deposit when signing a Contract for the purchase of a residential property. Having said that, it should be your quest to save the biggest deposit you can manage, our recommendation is to try and save a deposit equal to or greater than 20% if possible as this will save you from having to pay for the Lenders Mortgage Insurance. Remember to pay off or decrease your credit card debit as this will help with the finance process by channelling these repayments into your deposit savings account.
Buying Your First Home
Be Realistic: It is a rare thing to find the perfect home when you are a first home buyer, you need to be realistic in relation to what type of property you want, taking into account your budget and personal circumstances. Know what compromises you will be prepared to make to get into the market and purchase your first home, remember that any home that you buy, you can change the appearance of by simple renovations such as re-painting, re-decorating and re-establishing new gardens.
Look For Potential: Area potential, what amenities are on offer now and into the future, what shopping is available, what schools are available, Is there public transport available, what access is there to the major arterial road networks. Property potential, can the property be sub-divided now or into the future, can the property be extended easily, can the property be renovated to add value EG. Kitchen & bathroom upgrades, will simple redecorating add value EG. Flooring, painting, window furnishing, light fitting, gardens etc.
Don’t Be Shy When You Make an Offer: Whether you are buying at auction or privately, your goal is not to be intimidated by the buying process but also not to get carried away in the moment. If you love the home, your best strategy to buy is to be prepared with what your absolute best offer is and make it. If the property sells for a price over your absolute limit, let it go and look for another property. Making your absolute best offer for a property either privately or at auction will give you the best chance of buying the home on your terms in any given market. Remember sometimes it is just a matter of being in the right spot at the right time, don’t get disheartened you will find a home that fits your needs and budget.