Buying your first home can be a super scary and daunting process, but also an amazing feeling.
You’re buying an asset, one that will be the biggest in your life. It’s something that can increase your wealth and be a great form of enforced saving.
Here’s a few tips to make the process a little smoother:
What suburb would you like to live in?
First, you need to first work out where you’d love to live. Location is very important so make sure one weekend you drive by a few suburbs and get the feel of each one. Really take in the serenity and amenities to be able to work out whether it could suit your lifestyle or not.
Understanding the market
Understand how the market is going and do some research. It’s very easy to fall in love with the first home you see, but you might end up paying a little too much for it. If you investigate and attend open houses/auctions, you’ll get an idea of what homes in that area should be selling for and then help your negotiating skills.
Future rate rise and value loans
Mortgage rates are bound to rise, so it’s very important to factor in potential rises when deciding what is affordable for you. Then also shop around for a great value loan. Interest rates can vary and the certain amount can make a significant difference to your repayment costs.
Upfront costs
Remember to take into account other costs that you may need to address such as, mortgage insurance, stamp duty and moving costs.
Patience
This is probably the most exciting time in your life but remember to stay patient. It’s such an important decision so make sure it’s the right one. You may find your dream home in the first week or you may be looking for months, either way, be patient and you’ll find a perfect one eventually.
Article by Andrew Nguyen
