Buying your first home can be exciting and daunting at the same time. There are many aspects that are unfamiliar to you. Here are some quick tips to get you started:
- Save: A deposit, of 10% at least, is important as it gives potential buyers the boost they need when applying for a home loan. Put together a budget of your monthly expenses and put aside a set amount towards your deposit. This will also give you an indication of how it will feel once you have a home loan to pay off every month.
- Affordability: Find out how much you can afford to spend on a property. Click on the bond calculator and find the ‘Affordability Calculator’ to help you work this out. You may need to ask the ‘Bank of Mom and Dad’ to help towards your deposit and they may need to sign surety on your home loan.
- Buying off-plan: When buying a home you need to consider those ‘hidden’ costs like transfer duty and bond fees. New off-plan section title schemes include transfer fees in the price.
- Compromise: You might find that your two-bedroom garden unit may be difficult to obtain. You may have to rethink your needs. While you need two bedrooms, do you really need the garden? Remember, you will probably not be living there for the longer term, you simply need to get on the ladder.
- Go slow: Do not rush into anything. Take your time and ask advice from people you trust.
Here are useful tools to help you prepare properly when purchasing your first home: