5 Tips for First-Home Buyers in Australia
To buy or not to buy? With the real estate market being all over the place currently, it’s ok to wonder whether or not to buy, especially if you’re a first-time buyer.
It’s not a secret that the pandemic has reshaped Australia’s housing market. Thanks to the low-interest rates a lot of first-home buyers entered the market. Of course, the low-interest rates resulted in a significant jump in property prices – which has now halted or significantly reduced the number of first-home buyers.
The real estate market is fickle and it changes rapidly. If you’re still interested in buying your first home in Australia, there are some tips that you should be acquainted with. Let’s see what those tips are.
1. Check and double-check your finances
Buying your first home is a huge undertaking, that requires a lot of thought, evaluation, and research. First, before you rush the whole process, make sure you check and double-check the state of your finances.
If you’re planning on taking a mortgage, you should be aware that a mortgage is a huge financial responsibility and you should know if you can afford it. Do as much research as possible to figure out if now is a good time to purchase a home or invest in a property.
2. Understand the costs of buying a house
However, buying a house is just a small thing in the grand scheme of things – are you aware of all the costs you’ll have as a homeowner. Many people lose sight of this because they are too worried about the purchase price of the house. But there are other things to consider.
Stamp duty is just the first tax you’ll have to pay depending on the state you’re in. Then come the legal and conveyancing fees, finance and insurance costs, as well as building and pest inspections. Not to mention that you’ll also have to think about ongoing mortgage repayments, moving costs, council rates and strata fees, utilities and so much more.
3. Research mortgages and interest rates
Make sure you research mortgages and interest rates before you settle for anything. Before signing anything, you should know what you’re agreeing to. Research things such as terms of the loan, interest rates and how often is the interest calculated, whether you can redraw funds and other similar things.
When it comes to interest rates, you have two options – fixed and variable. Of course, you can already tell that variable interest rates are a bit riskier than fixed ones which are suited for those who are more budget-minded.
4. Hire professionals
To help you with finances and mortgages, interest rates, and so on, our best suggestion is to hire a financial advisor. A good financial advisor will help you ask all the right questions and see the bigger and more comprehensive picture of your financial state.
And while you’re hiring people that can help you out, you should also consider hiring a good real estate agent. Experts for real estate in Whitsundays will be more than happy to guide you through the homebuying process.
They will help you find the perfect location, find a property in your price range that meets all your needs and wishes. Real estate experts can also help you negotiate the purchase process, and save you from making any potential mistakes.
5. Know exactly the kind of property you are looking for
When looking for a house, you need to make a list of non-negotiables. What are the things you want your house to have, the location of the house, the type of property you want – a house or a studio, a unit or acreage, and so on.
Having a clear idea of what you’re looking for can help you and your real estate agent a lot. This list will help you narrow down the properties and the location of the property a lot. It will also help you figure out the prices for the area where you’re looking.
Being a first-house buyer can be stressful, to say the least. But if you really want to buy a home, you should evaluate and research so many things. And please do yourself a favor and hire and trust experts that will guide you through the whole process.
Buying and owning a house is not easy – always keep that in mind.