There are few periods in your life more exciting than buying your first home. It’s the culmination of hard work, sensible saving and a long-held dream to own your own home! But there is one more step to take: the process of buying. First home buyers probably haven’t encountered the property market before. Needless to say, it can be a little daunting. But help is at hand, in the form of our list of essential information for first home buyers. It might not cover it all, but it will certainly help point you in the right direction.
The first thing to do is establish a price
It might sound like the easiest step for first home buyers, but settling on a budget is harder than you think. Establishing your own price is all about balance: you want your first home to be every bit as comfortable as your thought it would be, but you also have to be reasonable about what you can afford. So take your time! Remember, almost all of your borrowing power as a first home buyer rests in the deposit. That means your budget is really a question of how much money you can get together before you approach the bank. Normally, banks demand a deposit of 20% on home loans. So theoretically, the longer you save, the more money banks will be prepared to lend you.
What are the different fees that first home buyers need to be aware of?
When you buy a home, it’s not all about the deposit. Sure, your home loan deposit is the most money you’ll need to spend. But you have to take stock of the other costs that will affect you as well. And these costs are many and varied. For example, you will need to spend money on movers’ fees, loan fees, legal fees, building and pest inspections, valuation fees and more. That means a significant portion of the money you have saved will need to go towards those fees, which may impact the amount of money you can afford to put towards your loan.
When your finance is in order, you can start your research into the property market
If you’re looking to buy your first house, you’re probably already familiar with your local property market. But now that you’ve consolidated enough money for a deposit, it’s time to get serious. That means looking at your local property market a bit more analytically. You will want to look for things like median prices, pricing hotspots, and the general concentration of high versus low price property. This will give you a good idea of what you should be paying, and where you should be paying it.
Building inspections are vital
It doesn’t matter if you’re a first home buyer or an investor with properties in the double digits – you still need to get pest and building inspections. These are important for two reasons. Firstly, these inspections will uncover any structural problems that may affect the lifetime, or even safety, of a house. And secondly, they will uncover any unwanted guests that might already inhabit the home you’re looking at buying. Knowing this before you go into the process of buying is absolutely imperative. It can also save you from losing a huge amount of money in the future.
The process can be complicated – first home buyers should team up with the experts
Finally, our most important piece of advice for first home buyers is don’t go it alone! The process of buying a house is complicated – anyone who has bought property before will tell you that. So team up with the relevant experts – conveyancing experts, real estate agents, and building inspectors.
The other experts you should turn to are the specialist homebuilders at Dixon Homes Cairns – get in touch today!