Making the decision to buy your first home can be a difficult one. There are so many things to consider, including market conditions, your personal and financial situation, any potential lifestyle changes, and the commitment and responsibility that come with home ownership.
Let us help you make the decision a little bit easier. We’ve put together a short guide to support you through the decision-making process:
Understand what it means to be a home owner
Regardless of your situation and whether you’re still living at home or in a rental property, deciding to buy your first home is a huge decision. There’s a lot more to think about other than the financial ramifications. This decision is also an emotional one, and therefore it’s important to understand the impact home ownership can have on your life.
Work out your current financial situation and understand your financial options
The next step is to understand your financial situation. It makes good sense to get your finances in order before you start looking to buy and applying for a home loan. Determine how secure your current source of income is, prepare a monthly budget, and save for a deposit. When you feel like you’ve done your financial housekeeping, work out how much deposit you will need and establish how much you can borrow. Research the types of home loans on offer making sure you understand home loan fees, costs and charges.
Get government assistance
The First Home Owner Grant of $10,000 in Victoria, is available for you to buy or build your first new home, valued at $750,000 or less. In addition, eligible first home buyers entering into contracts on or after 1 July 2017, will benefit from paying no stamp duty on properties valued up to $600,000. Properties between $600,001 and $750,000 will receive a tapered discount.
For more information visit: http://www.sro.vic.gov.au/first-home-owner
Start making decisions and know your limitations
Now that you understand the impact home ownership brings, your finances are in order and you know your home loan options, start putting some parameters around what type of home you can afford to buy. In other words, start making decisions around the type of home to buy and where to buy it.
Understand the purchase process and legalities
Ask questions and get legal advice. Understanding the purchase process could be the difference between securing the house of your dreams, and missing out altogether. Knowing what to expect during the process will help minimise your risk and place you in the best possible position to buy your dream home.
Be aware of common mistakes and avoid them
We all make mistakes, especially if we’re doing something for the first time. But making a mistake as a first home buyer can be very costly. Know the “don’ts” and just don’t do them!
Don’t: Go over budget
Don’t: Neglect your research
Don’t: Buy with your heart
Don’t: Go with the first lender you find – shop around
Don’t: Rush in to buy
However, DO celebrate when you buy your first home. While the decision-making process can be overwhelming, securing your new home is an achievement worth celebrating.
To discuss your first home needs, contact the Thornhill Park sales team on 1300 001 687.