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May 11, 2018

Important First Home Buyer Lessons

If 2018 is the year for you to step on to the property ladder, the following tips will get you off on the right foot.

Be realistic as to what you can afford
Many people have grand ambitions when it comes to their first house, far above what they can (and should) borrow to purchase.  Create a budget so you know exactly what you can afford.The trick is then to  look within your budget .

Make sure you capture all the expenses
Consider the additional costs that come with owning a home of your own. First there are the purchasing costs, such as legal and mortgage fees. Not to mention rates, insurances, repairs and maintenance that you don’t have to worry about when you live with mum and dad or rent from your landlord.

Get pre-approved
Before you start pounding the pavements, it’s important that first homebuyers find out exactly what type of mortgage the bank is likely to approve. Knowing how much you have to spend means avoiding disappointment and importantly, being prepared when the right property presents itself. It also makes putting in an offer a smoother process, once you find the ideal property.

Look past the little flaws
If you were to purchase something that needs a little cosmetic work, you can add value and increase equity, putting you in good stead to continue climbing onwards and upwards and potentially invest in further properties. This requires a bit of vision and a willingness to do some manual labour, but is a worthwhile strategy for first homebuyers to adopt.You’re far better off paying less at point of purchase and having to put in some elbow grease, than paying for someone else’s hard work.

Future-proof as much as possible
When it comes to buying your first home specifically, future planning should include not only your personal needs and desires, but also what the market you are buying into will look like in ten years time when you might be thinking of moving on and selling, or using the equity in your home to purchase another property. Does that particular property in that particular location represent a good long-term investment, as well as a cozy first home?

Are you thinking about buying your first home? We can help! With experienced agents, great properties available, and a wealth of knowledge to guide you through the process, make Define Property Agents your first call.