Buying your first home is an emotional experience. Both exciting and exhausting, your home will likely be the biggest investment you make. To help take away some of the complexity in purchasing property, we have compiled a list of things you need to know:
- Consider what you can afford
Even before you start scoping out suburbs and potential houses, you need to know how much you can truly afford. This does not mean the maximum you can borrow; it means the maximum you are prepared to pay each month. You need to plan your budget with your home loan repayment in mind, as well as upfront costs, such as stamp duty.
- Research your preferred location and property
Learn as much as you can about the area you want to buy in and some of the homes that you feel have potential. Talk to mortgage brokers to understand how properties are valued, what features increase the value of your home, and what is purely cosmetics. Also, you should visit as many display homes as possible. And don’t forget to ask questions. The more you ask, the more you will know. Understand what you should look out for.
- When looking at finance options, work with professionals
Surround yourself with experts in the housing industry. Work with a mortgage broker which understands construction finance. Ensure your finance is structured to meet your needs and invest into a financial adviser to understand the realities of owning a home.
- Learn to negotiate and don’t feel pressured
Negotiation is essential for you to feel in control. Remember, you will come across typical ‘salespeople’ which may try to pressure you into a quick sale. Try not to get swept away with promotions that look to good to be true – always get a comparison quote so you understand like for like who is giving you better value for your financial investment. If you feel rushed don’t act hastily; back away and take the time you need to consider the quote properly and objectively.
- Use your head, not your heart
Building a new home may be something you have your heart set on, and when you find the perfect home design, perhaps you will want to throw everything you have at it. But when you are purchasing your biggest life investment, you need to use your head. Be smart, be patient, take your time in making decisions and listen to the experts. All of this can save you from future heartache.