Congratulations! You’ve reached a new chapter in your life, you are ready to hunt down for your dream home. Whether you prefer a quiet suburban home with plenty of space or a modernised urban abode in the bustling city, there are some major considerations to help you find the right fit based on your personal circumstances. With that said, here are three key things to consider before officially purchasing your first property.
- Be Realistic With Your Budget
Careful consideration is key when it comes to deciding the fixed value that you are willing to put away for your new home, and importantly if you are capable of affording it in the long run. The transition of moving out of a rental home can drastically affect your budget due to home loan repayments and other associated costs like loan application fees, mortgage registration fees and builders and contents insurance. If you plan to take out a home loan, remember to take into account how much the repayment cost would be and be realistic about whether this fits your budget. Consider what the maximum repayment is that you are willing to repay each month and ensure that the costs will not affect your existing lifestyle and needs.
Before you commit to signing the dotted line, be confident that you have triple-checked hidden costs such as: council rates, stamp duty, lenders mortgage insurance, conveyancing, loan fees, and many others. Make sure you weave them accordingly into your budget to prevent any financial scares in the future.
- Research Your Ideal Neighbourhood
A crucial tip to remember is that your home does not exist in a bubble, it is also part of a larger community that you will interact with and exist in on a daily basis for years to come. Therefore, doing some background research in the neighbourhood planning and potential investments going into a new area is key to understanding the trajectory of your property and its future value. The common misconception of buying a property in an undeveloped neighbourhood is the idea that the area will not have much to offer. However, purchasing properties in up-and-coming areas has its benefits for first home buyers, as they are often a more affordable option to enter the market with. Picking an area that is budding with plans for new businesses, schools, town centres, public transport and health precincts is a good indication that down the track, with patience, the neighbourhood will draw more people in and increase in desirability. Buyers will be able to ride the wave of the area’s growth, while benefiting from the cheaper price tag from the onset. By purchasing these properties early, you will be ahead of the game – it just takes some thorough research and a bit of digging
- Be Aware Of The Property’s Condition
The age of the property should certainly play a role in your decision-making when buying. Older homes tend to require more care than their newer counterparts. Possible renovations and repairs can bring more stress to your life as well as your financial circumstances. On the flip side, when purchasing a new apartment or off the plan through a trusted developer, you can be sure that you are walking into a brand new home that you won’t need to touch in order to have everything you need. It’s always a good idea to look at the portfolio and completed projects from your chosen team, so that you can see the quality and finish of their works and have peace of mind that your home is going to be exactly as it is promised.
If you’re buying an older home, take the time to seek out any minor or major issues with the property to ensure you won’t encounter any nasty, hidden surprises. A useful tip to counter this situation is to always ask questions and don’t be afraid of asking more until you get the answers you are satisfied with.