A Guide To Buying Your First Home

Taking your first tentative steps into the property market is daunting. Home loans, interest rates, open for inspections, settlements; there’s a long list of things to wrap your head around. But by doing your research and making some smart choices, your first property purchase can set you up for life.

Organise your finances
When purchasing your first home, it’s vital to have a clear picture of your financial situation. The major expense will be the deposit of at least 20%, or mortgage lenders insurance if yours is less than that amount. After the deposit, you’ll need to take out a home loan to cover the rest of the purchase. There are different types of loans, and the amount you can borrow will depend on your income, employment situation, existing financial commitments, credit record, and the size of your deposit. Look into getting pre-approval for your loan – if you know how much money you have to work with you’ll be in a stronger negotiating position. Other financial considerations can include property valuation, stamp duty, bank and legal fees, mortgage repayments, council rates, and more.

Choose your location
As a first home buyer, you’re more likely to be on a limited budget. Accept that, for now, you may have to settle for a two bedroom instead of a three bedroom, or a house in the suburb bordering your desired area. Know what you can afford and what you can get for your money, then start shortlisting the units or houses that meet your criteria.

Know the market
As a first home buyer, aim to arm yourself with as much information about the state of the market as you can. Read the property section of the newspaper and head online to look at real estate blogs like Nelson Alexander’s and reputable sites like PropertyData.com.au or the Real Estate Institute of Victoria portal. Basically, become an expert.

Attend open-for-inspections
Attend opens and speak to the real estate agents running them – they’re knowledgeable about the local area and will be full of advice and pointers that first home buyers will find really useful. Identification is often a condition of entry, and you should take a pen and paper or a tablet to take notes. When you find a property you like, go back and view it a few times to get a more complete impression – check noise and traffic levels, visit at different times of day, and look for structural issues like sloping floors or cracked walls.

At the settlement
Before the settlement goes through, you’ll have a final opportunity to inspect the property and ensure that everything is in good condition, the same as it was the last time you looked over it. After settlement, your solicitor will confirm that everything is in order, send you the Statement of Adjustment, and the keys will be released to you – and you’ll be the proud owner of your very first home.