Imagine picking out your own colour for the walls in your new home or even deciding on a whim that you want to put that picture up on the wall without asking for permission from the landlord.
You are no longer paying someone else’s mortgage with your rent money.
You have bought your first home.
Here are six hints to prepare yourself to buy your first home.
Hint 1: Make a list of what you want for your first home.
Make a list of “must-haves” and “nice-to-haves”. This will help you to make better decisions when searching for a property. In the list of must-haves write down your minimum requirements such as bedrooms, bathrooms, parking, size, and location. Create a list of nice-to-haves. Nice-to-haves features are items which you could be prepared to forgo if the property meets the majority of your must-have requirements.
Hint 2: Investigate your budget for your first home.
To determine what your budget can be, make an appointment with experts like a financial planner and either a banker or a mortgage broker.
They can assess your circumstances and give advice on the amount you can afford to
borrow. Make sure that you calculate the direct costs you need to pay the moment you buy a property, like stamp duty.
Hint 3: Explore the financial incentives that the NSW Government and the Federal Government have for First Home Buyers.
These incentives are designed to make it easier for First Home Buyers to enter the property market. For example, the NSW Government just launched Shared Equity Home Buyer Helper. Also the First Home Buyer Choice which provides first home buyers with the option between paying a smaller annual property tax, instead of stamp duty.
Visit this webpage for more information and if you’re eligible: https://www.nsw.gov.au/housing-and-construction/first-home-buyer-grants-and-assistance
Hint 4: Explore the market
You have short listed suburbs and locations that you can potentially see yourself living. Now start inspecting some properties in the various suburbs. Ask the agent questions to understand what kind of market it is and what different price points properties are selling for. Explore locations and talk to existing residents, chat to the café owners, business owners, friends that live in the area.
Register here to get an email when we have new properties for sale: https://www.coogeerealestate.com.au/register/
Hint 5: Have your financials in order or even apply for a pre-approval
Once you have clear idea of what you are eligible for you can approach your lender for a pre-approval. In the conversations you have with your Financial Advisor ask about what you need to do for example paying off debt and knowing your credit score. Get your finances in order with a budget and payment strategy.
By having a pre-approval, you are in a better position to negotiate and sign the sales contract.
Hint 6: Preparing to bid at auction
Preparing to bid at auction means having your finance and due diligence sorted and be ready to bid on the day. Make sure to set your maximum price limit as emotions can cloud your judgment during auction.
Talk to the agent to gather as much information as possible about the competition you might have on the day. Attend some auctions of comparable properties in the weeks before you purchase to get a feel for the workings of an auction and the different bidding strategies.
TIP: Ask the agent if the owner is open to an offer before the auction as this might prevent going in with a lot of competition. Sometimes an owner just wants a property sold.
Click here to see our sales properties.
Good Luck!