By Arnab Dey
Home ownership is a goal many Australians strive toward. Despite being an exciting experience, it can also be quite stressful,
Especially if you’re among the first-time home buyers, it is possible and completely normal that you are unsure where to begin.
Furthermore, this will make you try to make your first property purchase on your own, which can lead to a long, drawn-out process.
Want to know what the experts recommend? The first-time homebuyers always use the real estate agents Langwarrin properties rely on for a hassle-free buying process.
They will guide you throughout the process and offer assistance, advice, and recommendations where needed.
In this article, I will give you a detailed overview of the various tidbits of house buying. If you are among the first-time home buyers, this guide is for you.
Questions To Ask Yourself Before Buying A New House
I know you must be thinking, “Why do I need to ask myself anything when I am ready to buy a new house?” This is a common thought among first-time home buyers.
While your confusion is absolutely valid, buying a new house is a big decision. Therefore, it is always advisable to recheck with yourself regarding your needs and wants.
1. What Are My Real Reasons For Buying A House?
One thing you have to remember, like all the other first-time home buyers, is that having a clear answer will help you make a decision that fits your goals.
Common reasons for buying a house include wanting stability, needing more space, or wanting to invest in property.
Additionally, you must be careful not to buy just because prices are low or you feel pressured by others. Before you decide, consider the pros and cons of owning a home and the long-term costs.
I will tell you exactly what I say to all the first-time home buyers. Homeownership means taking on responsibilities like
- Maintenance
- Repairs
- Property taxes
Before you buy, make sure you are financially ready for these costs. Proceed only if you have a clear answer and are committed to buying a house.
2. Should I Wait For A Price Fall In The Market?
Let me tell you something before you panic. And let me tell you, it’s normal to want to wait for lower prices before making a big decision.
Nevertheless, remember that the real estate market is complicated and hard to predict, especially for first-time home buyers.
Therefore, if you decide to wait for the price to fall, it might not always be the best strategy, especially when you have decided to invest in a residential property.
Although it’s true that prices can occasionally fluctuate during market fluctuations or economic downturns, it’s still not a guarantee.
Additionally, you have to consider the other factor, which is that even if prices do fall, they may not fall enough to significantly affect affordability.
3. How Long Am I Planning To Stay In The City?
Before getting ready to buy a house, consider your current life situation. This evaluation will be completely based on your professional and social factors.
Please remember that A key factor to consider is whether you can keep your job if you move or if you plan to relocate for better job opportunities.
In this case, what should you do? If you analyze whether you are in either of these situations, buying a home may not be the best use of your money.
You should know that owning a home is a long-term commitment that needs a lot of time, patience, and money.
Nevertheless, you dont need to worry. Make sure that the time and money you invest in buying a home will be worth it in the end.
Buying Property Doesn’t Have To Be A Nightmare
Starting the property buying process is considerably less daunting if you have a plan of action. Therefore, planning should always be the first step for all first-time home buyers.
Our team of real estate experts has compiled a list of the steps required to give you some insight into what to expect.
1. Assess A Reasonable Budget
Okay, here’s what you have to begin with. The first step in the property-buying process involves knowing how much you can afford to pay.
You have to be a tad bit careful about this, as this process will require a comprehensive audit of your current and future finances. Here are a few tips to follow in this step:
- Draw up a list of all your monthly expenses.
- Highlight the debts you can finalise before the buying process starts. This will increase your affordability.
- Limit making large credit purchases before finalising your home buy.
2. Establish Your Loan Capacity
Your next step should be to approach your preferred lender or bank to assess your loan capacity. This is a crucial step, so keep track of it.
Since factors such as interest rates and repayment periods can differ between lenders, it’s a good idea to compare options.
Also, you must know about a certain advantage you have. Many potential home buyers enlist the services of mortgage brokers for first-time home buyers.
These specialists will be able to assist you with establishing lending options based on your –
- Income
- Assets
- Dependents
- Debts
Speak to your real estate agent about recommendations, as they may be able to assist with this as well.
3. Review Various Loan Options
It’s essential to review the different home loan options available curated for first-time home buyers. The more popular options to consider include the following:
- Fixed loan: This gives you the security of a fixed repayment amount.
- Redraw facilities: These are popular because they allow the lender to repay more than the average minimum mortgage repayment. Users can then withdraw the surplus amounts.
- All-in-one loan: This type of loan allows you to put any savings or surplus amounts into these accounts, which in turn offset the loan principal and reduce your interest rate.
Once you have compared loan options and finalised the decision about your preferred lender, you will need to request your “home loan guarantee certificate”.
This proves that your loan request will be approved when you find the property you would like to purchase.
You might feel impatient during this. It’s important to note that these approvals are usually valid for six to twelve months.
4. Start Looking For Your Home
Having a real estate agent on your side and your loan approved, you are ready to start looking for your dream home.
Be very specific about the requirements for your new home as well as your preferred areas and proximity to amenities.
This will make it easier for all you first-time home buyers and your real estate agent to provide you with credible options.
5. Decide On Building Inspections
It’s always a good idea to enlist a few contractors to do the necessary building inspections that will give you confirmation that the house is in order.
Some of the more common inspections you should consider include the following:
- Building inspections
- Electrical inspections
- Land or property survey
- Pest inspections (termite inspections are essential as they affect the structure of your home)
6. Submit Your Offer
Your real estate agent will usually handle the bulk of your price negotiations. This is because they have experience in assessing offers and have more insight into the flexibility available.
They will also be able to advise you of instances when you may need to increase your offer to outbid a competing offer.
7. Engage In The Legal Process
You will also need a property attorney to assist with drawing up the contract for your lease agreement.
It’s important to have a straightforward contract with no hidden clauses that may cause future issues. This process could take anywhere from a few days to a few weeks to finalise.
8. Embrace Settlement Day
The term “settlement day” refers to the day when everything has been finalised, and you meet with the seller to exchange payment for the title of ownership.
Your real estate agent will advise you of the process you need to follow to finalise any outstanding issues. You will also need to arrange insurance for your new home.
Final Thoughts
If you’re getting ready to purchase your first property, start by speaking to a real estate agent about the required documentation.
Assess your affordability before starting the process so that you don’t waste your time looking at spaces you can’t afford.
With the right real estate agent by your side, you’ll be moving into your dream home sooner than you think!
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