Buying your first home is an exciting step in life, however the exhilaration can be seriously dampened by unexpected hurtles or expenses you haven’t budgeted for.
Read these 5 handy tips to make sure buying your first home is a seamless and positive experience with no surprises in store or unexpected costs incurred.
1. Plan for additional costs
Apart from your initial deposit which is usually a minimum of 5% required to purchase a home, there are some other costs such as stamp duty to budget for.
Keep in mind that if you are a first home buyer who is eligible for the First Home Owner’s Grant, you may be entitled to receive a stamp duty concession. The amount and eligibility criteria may differ between Australian states, however make sure you speak to the governing body in your state to find out whether you are eligible to apply for the First Home Owner’s Grant/Stamp Duty Concession or speak to a Credit One Mortgage Specialist today for an obligation-free discussion.
If you have less than a 20% deposit towards your new home, be aware that you may have to pay Lender’s Mortgage Insurance (LMI), which can increase the funds you need to complete settlement by a considerable amount.
A very useful source of information for people looking to either purchase their first home or an additional property is ASIC’s Money Smart website.
Furthermore, you may have costs such as registration of mortgage, registration of transfer, conveyancing, bank settlement and establishment fees to consider.
Speak to one of our Mortgage Specialists today to discuss how we can help you get into your first home sooner and ensure you don’t run into any unnecessary or hidden fees.
2. Get to know your local area
Prior to committing to a home purchase, make sure you spend some time in and around the area you are looking to buy in. Furthermore, make sure you like it because purchasing a property is a long-term commitment.
Have a look around your local area, get to know the shops, schools, attractions and public transport system. Make sure you visit your relevant state’s transport website for public transport information in your area.
- QLD - Translink
- NSW - Transport NSW
- VIC - Public Transport Victoria
- SA – Adelaide Metro
- TAS – Metro Tas
- WA – Transperth
- ACT – Action ACT
- NT – Transport NT
Think about all the things you currently do in everyday life and imagine doing them in your new area. For example, do you frequently use a gym? If so, is there a suitable gym around your area that you can transfer to?
For handy information on Australian suburbs and suburb profiles, Realestate.com.au and Domain both offer useful suburb information.
Make sure you have created a budget prior to establishing your home loan. It should include your estimated mortgage repayments and don’t forget to include additional expenses such as rates & water, electricity and home & contents insurance.
ASIC’s Money Smart website has a fantastic Budget Planner Tool which allows you to break down your expenses and view your annual/quarterly/monthly/weekly budget so you can easily see where your money in going. ASIC now also offers the MoneySmart Track My Spend app for both Android and IPhone devices which allows you to easily track your budget on your phone as well as allowing you to nominate spending limits, set payment and bill reminders and separate your ‘needs’ from your ‘wants’ to help effectively manage your money.
4. Do your Homework
A pre-purchase building and pest inspection is extremely important when buying your first home so that you are fully aware of the condition of the property and any potential issues, defects or faults that the property may have. The inspection will also help to ensure that the property is free from nasty pests so you’re not purchasing a property with a potentially expensive pest problem. Not only does it give you peace of mind knowing that your soon-to-be home is in good condition and you aren’t buying into a mountain of costly repairs, but it can also give you a better indication of what the property is worth and whether you will need to spend money on the property to make it liveable.
It is most definitely worth considering hiring a professional to undertake the pre-purchase inspection of the property on your behalf, because they know what to look for. It may cost you in the vicinity of $300-$600 for a professional inspection, however it is a small price to pay for peace of mind on possibly the most expensive asset you will purchase in your lifetime.
A good conveyancing solicitor is also a must when purchasing a property. They will research the property and perform a title search along with all other required searches on the property. They will also prepare and lodge all required legal documentation on your behalf including contract of sale and title transfer.
Our home loan experts can save you time and money by ensuring you have your pre-approval in place, so that you’re in the position to make an offer or place a deposit as soon as you find your perfect home. A pre-approval can ensure that you don’t run the risk of missing out on the right property for you. Our Mortgage Specialists are here to help you find the right home loan for your circumstances from our panel of over 30 leading lenders to ensure you can pay your home off and own it outright sooner.
Flexible home loan features such as 100% offset accounts, debt consolidation, up to 95% LVR, gifted deposits, previous credit impairment considered and self-employed applicants are no problem for our team of dedicated Mortgage Specialists.
Rather than going to your bank and having access to only their limited line of products, consider using our Mortgage Specialists to have access to hundreds of products from over 30 lenders. We can help you get a better home loan pre-approval for either your first home or your next investment property.
Phone us today on 1300 273 348 for an obligation-free discussion or send us an enquiry.
- Welcome to the launch of the new CreditOne Website!
- Why you shouldn't use home equity to buy your new car
- 10 Handy Tips for Test Driving Used Cars
- RBA Cuts Interest Rates - But What Does That Mean for Me?
- 5 Handy Tips for Tax Time