First Home Buyer Chronicles
The ultimate guide for 1st home buyers
The Investment property market can be a minefield for first home buyers. There are so many things to consider when buying residential property and it is easy to feel overwhelmed. However, with careful planning and patience, it is possible to find the perfect property. The first step is to work out what you can afford. Get pre-approval for a loan and make sure you leave some room in your budget for unexpected expenses. Once you know your price range, you can start looking at suitable properties. Keep an open mind and be willing to compromise on certain features. With perseverance, you will eventually find a property that ticks all the boxes. The most important thing is to stay calm and enjoy the process. After all, buying a property is one of the most exciting things you will ever do.
The hardest part is to save
Saving for your 1st deposit is hard when buying property. It may seem impossible to come up with the required amount, but there are a few things you can do to speed up the process. First, start by setting up a budget and sticking to it. Make sure you are not spending more than you can afford. Next, cut back on unnecessary expenses and put any extra money towards your deposit. Finally, consider getting a part-time job or earning extra money through side hustles. With discipline and perseverance, you will reach your savings goal in no time.
If you're considering entering the investment property market, there's a lot to think about – from finding the right property to getting mortgage pre-approval. It can be a daunting task, but it doesn't have to be. Here are a few things to keep in mind as you start your journey as a first home buyer.
What can you afford as a first home buyer?
The first step is to figure out what you can afford to purchase. This means taking a close look at your finances and coming up with a budget. Once you know how much you can realistically spend, you can start searching for properties that fit your price range. Saving for your deposit is the hardest part, but it's important to remember that you don't need to have 20% of the purchase price. There are plenty of low deposit home loan options available that can make buying your first property more achievable. Don't forget to factor in costs like stamp duty, legal fees, and moving costs when budgeting for your first home. With all of these things taken into consideration, you'll be well on your way to finding the perfect property and making your dream of owning a home a reality.
Using a good mortgage broker to guide you through the process
The second step is once you've found a few properties that you like, it's time to start thinking about getting a mortgage. The first step is to get pre-approval from a lender. This will give you an idea of how much money you'll be able to borrow and what your repayments will be. It's also a good idea to compare interest rates from different lenders before deciding on a loan. Finding a good mortgage broker can be hard, but it's worth it in the long run. They'll be able to help you find the best loan for your needs and guide you through the process.
Research, Research, Research
The third step is to research the suburb or area you're interested in. This is important because it will help you understand things like median house prices, growth potential, and local amenities. All of this information will come in handy when it comes time to make an offer on a property. If you're not sure where to start your search, talk to a real estate agent. They will be able to show you properties that meet your criteria and answer any questions you have about the process.
Carryout your Due diligence
The fourth step is to carry out a building and pest inspection. This is an important step to ensure that the property is structurally sound and free from pests. Once you've received a clean report, you can move forward with confidence. Building and pest inspections can be carried out by a professional or you can do it yourself. However, if you're not confident in your ability to identify potential problems, it's best to leave it to the experts.
Let's take the step and make an offer
The fifth step is making an offer on a property. Once you've found a property you like and are ready to make an offer, there are a few things to keep in mind. First, it's important to do your homework and find out how much similar properties have sold in the area. This will give you an idea of what the property is worth and how much wiggle room there is for negotiation. It's also a good idea to get a building inspection report before making an offer, just to be on the safe side.
Negotiation is not easy
The sixth step is to negotiate the purchase price. This is where having a good buyer's agent comes in handy. They will be able to advise you on what an acceptable offer is and help you negotiate with the seller. Negotiating is not easy, but with patience and perseverance, you will eventually come to an agreement. Try and remove emotion from the equation and focus on getting the best deal possible. Buying emotionally can lead to overspending and regret later on.
Using a good legal team to support you
The seventh step is sending the contract to the solicitors/conveyancers. Once you've reached an agreement with the seller, it's time to get the contract of sale drawn up. This is a legal document that outlines the terms of the sale, so it's important to have a solicitor or conveyancer check it over before you sign. Solicitors/conveyancers may put special conditions in the contract, to protect you, so make sure you understand everything before you sign.
Sign your life away
The eighth step is to exchange contracts and pay a deposit. Once you've reached an agreement with the seller, it's time to sign the contract and pay a deposit (usually 10% of the purchase price). This is a legally binding agreement, so make sure you're ready to commit before you sign. Note, depending on the state you purchase your property in, you may need insurance cover from the date of exchange. Do your due diligence and approach an insurance broker to discuss your options.
Cooling off period or special conditions
The ninth step is when you may have a cooling-off period. Once the contract is signed, you will have a cooling-off period depending on the state you are in. This is a period where you can change your mind about the purchase without penalty. You also may have special conditions during this period that must be met before the sale is finalized.
Final Bank Approval
The tenth step is formal approval from the bank. While in the cooling-off period or the conditional part of the contract, it's time to get formal approval from the bank. This is when they will assess your loan application and decide whether or not your valuation is acceptable. If everything goes well, your loan becomes unconditional.
Unconditional
The eleventh step is the contract becoming unconditional. This is the final step in the process and once you reach this stage, there's no turning back.
Final Step
The final step is the settlement. This is when the balance of the purchase price is paid and you become the new owner of the property
Congratulations
This is a big moment –congratulations, you are now the proud owner of your first home!
First home buyers often find the property market daunting. With prices on the rise, it can be difficult to save enough for a deposit, let alone find a property that meets your needs.
However, there are a number of ways to make the property market more accessible. First, consider working with a property buyer's agent. They can help you to navigate the market and find properties that fit your budget. Additionally, be sure to do your research so that you know what you can afford and what to expect in terms of property prices. With a little planning and advice, first home buyers can enter the property market with confidence.
First home owner grant
The first home owner grant is a one-off payment to eligible first home buyers. The grant is means-tested, so you will need to provide evidence of your income to qualify. The grant is paid by the state government and can be used towards the purchase of a new or established home. To apply for the grant, you will need to submit an application to the relevant state authority. If you are a permanent resident, you may be eligible for the first homeowner grant.
State revenue office
The state revenue office is the government body responsible for collecting stamp duty. Stamp duty is payable on the purchase of a property and is calculated based on the value of the property. The amount of stamp duty you will pay depends on the state in which the property is located.
Stamp duty concessions
First home buyers may also be eligible for stamp duty concessions. Stamp duty is a tax that is payable on the purchase of a property. The amount of stamp duty you will pay depends on the value of the property and the state in which it is located. Australian citizen or permanent resident, you may be eligible for a stamp duty concession. Stamp Duty could be the difference between owning your first home sooner or later.
Consider Rent vest
An option for first home buyers who are finding it difficult to save a deposit is rent vesting. Rent vesting allows you to purchase a property while renting it out, and use the rental income to help pay off your mortgage. The main advantage of rent vesting is that it allows you to build equity in a property without needing a large deposit. Additionally, you will benefit from any capital growth in the property as your tenants help to pay off the mortgage. Buying an investment property and renting it out can be a great way to get into the property market, but there are a few things to keep in mind. First, you will need to find a property that is suitable for tenants. Additionally, you will need to factor in the cost of repairs and maintenance, as well as the cost of tenant turnover.
When buying your first and new home, it's important to do your research and seek out all available stamp duty concessions and grants. This will help to make the process more affordable and less daunting. With a little planning and advice, first home buyers can enter the property market with confidence.
Can you afford to do this alone?
Buyers Agents can help first home buyers in a number of ways. They can help to assess your needs and financial situation, and then provide you with a list of properties that fit your budget. Additionally, they can help you to negotiate with sellers and get the best possible price for your new home. Further, they can provide you with advice on the property market and help you to avoid making any mistakes that could cost you money, and stop you from overpaying for your first home.
When buying your first home, it's important to remember that you cant buy it emotionally. This means that you may be willing to pay more for a property than you can afford, in order to get the home that you want. Additionally, first home buyers often tend to over offer on properties. This is because they are excited about getting their first home and want to make sure that they secure it. However, overbidding on a property can lead to financial stress later on, so it's important to remain calm and only offer what you can afford. This is why it can be a good idea to use a buyer's agent to save you money and help you stay within your budget.
Becoming a homeowner is an exciting milestone in anyone’s life, and we hope that this blog has helped to make the process a little less daunting. If you have any questions or comments, please leave them below! And finally, congratulations on your decision to become a first-time homebuyer – it’s one of the biggest & smartest decisions you will ever make. Comment below to let us know your first home buying experience!
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