First Home Buyers Beware

 

Buying a property can be a daunting task, especially if this is your first time purchase. A number of factors need to go into your decision and you'll want to consider them all before you make your final decision.

 

The old adage 'location, location, location' certainly rings true, especially when considering your new home.

 

  • Check the selling prices of comparable homes in your area. Web sites such as realestate.com.au and domain.com.au can give you a general idea of what you should expect to pay.

  • See what you can afford. Use ASIC mortgage tools to calculate what your payment would be.

  • Find out what your total monthly housing costs would be, including loan repayment, outgoings and homeowners' insurance. 

  • Find out how much you'll likely pay in settlement costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include stamp duty, legal fees and prepaid items such as council rate, water rate and outgoing fees e.g. strata levies.

  • Look at your budget and determine how a house fits into it.

  • Being Practical - remember to look at all aspects of the property. It is about balancing the pros and cons as no property will ever be perfect.

  • Choosing the right area to buy in is important and not just from a capital growth point of view. Where you live becomes a big part of your life and essentially forms the lifestyle you live.

  • There are other things to be aware of ranging from the various government benefits for first home buyers to understanding the requirements the various lenders place on you before they will give you a loan. Government grants and stamp duty exemptions can save you up to $40,000.00 off the cost of your new property in some states. So clearly understand these benefits are worthwhile if you're eligible.