FIRST HOME BUYER TIPS

Seeking some first home buyer tips, you will need to consider the right property for you and what features are important to you.  All this will need to take place within the confines of your budget and then you will need to understand how the process of buying a new homes works and what you plans are into the longer term.

THE RIGHT PROPERTY FOR YOU

When choosing a property the best place to start is working out where you would like to live. You will need to consider how close services are such as shopping centres, schools, medical facilities, sporting and entertainment facilities.  You will also need to take into consideration how far it is for you and your partner to travel to work, whether there is public transport that you can use such as rail way stations and bus stops. 

The next thing to consider is what type of home you are looking for and how affordable that sort of home is in you chosen area.  You will need to consider whether you wish to buy a new home or an established one taking into consideration that you cannot receive a first home owner’s grant if you buy an established home.  You will need to formulate what your long term goals are. Are you going to buy a new home stay in it for a few years and then sell and move or are you going to buy your forever home?


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WHAT FEATURES ABOUT A PROPERTY ARE IMPORTANT TO YOU?

Of the many first home buyer tips you need to consider what features in your new home are important to you, I would call them your core features and the secondary things that you would like in your new home but cannot afford at this stage.  You also need to consider what you need to include in the building contract and what you can add later. For example if you want higher ceilings then you will need to included them in the build contract as you cannot change this later but if you would like a pool you may just add the necessary slab changes that will accommodate a pool and add the pool later after you have been in the home for a while.  

You may like upmarket fixtures and fittings such as upgraded ovens and tapware, carpet, stone benchtops and glass splash back you may be able to upgrade these items at a later stage when you have a little more money.   Choosing the home you would like to have and what you can afford usually requires some hard decisions to be made so that you can stay within your budget.

HOW MUCH CAN YOU BORROW?

There will be a limit on what you can spend on your new home which will be determined by how much savings and debt you have and you’re earning capacity. Go our page first time home buyer mortgage to give you an idea of what you can borrow.

Of the many first home buyer tips I give clients is that  in addition to knowing how much you can borrow you will need to consider what loan repayments you are comfortable with, you will have to make these on a monthly basis.  It is important to take your life style into account and not over extend yourself.  You need to consider what contingencies will arise, what happens if you or your partner is out of work for a while? What happens if you have children and one of you only works part time? 

In addition to your home loan you will need to consider what other demands will be made on your income, will you have other loan commitments to make? What are your travel costs to work and how much do you need for living expenses. If you have children what are the cost of child care and schooling going to be?  

Your mortgage broker will be able to give you advice in this area and help our plan for a repayment scheme that you will be comfortable with.  Don’t be afraid to ask what if questions? Also keep in mind that while your house is under construction you will need to meet the mortgage repayments.  During the build process that banks normally only charge you interest on the money that has been drawn down so far.

HOW DOES THE BUILDING PROCESS WORK?

The first thing that you will need to do is get pre-approval for finance in place, once you have this you will be able to look for a new house that suits your needs. 

The next thing to do is to find a home that you like. If you are building a new home then the best way forward is to buy a new house and land package. 

When you have found the home that you are looking for then you and are ready to move forward you will be presented with two contracts. The first contract is for the sale of the block of land and the second for a building the home. In Queensland the land sales contract should be a standard REIQ contract and the building contract should and industry standard contract issued by the MBA (Master Builders Association), the HIA (Housing Association) or the QBCC (Queensland Building and Construction Commission).

You will need to engage a solicitor to do your conveyancing work for you,  you can either use your own or have us put you in touch with someone.  We can help you every step of the way, contact us for more information.

Bathroom with semi-frameless shower and free standing bath with suspended vanity basin in the background
First Home Buyer Tips internal entry with tiled floor and stairs in the background

WHAT EXTRA COSTS CAN YOU EXPECT?

First home buyer tips don't forget the things that are not included and what is left to do after you move in. Important to enter into a full turnkey fixed price contract so that you have no hidden surprises once the contract has been signed.  You will also need to consider what it will cost you to move into your new home and what furniture you will need to buy.   You may also have other cost to consider such the cost of your new travel requirements, will you need to buy a second car? 

FIRST HOME BUYER TIPS FOR  SELLING IN THE FUTURE  

Depending your planed time frame for staying in the home one of the first home buyer tips you may need to consider what it will cost you to sell your new home. You will have to pay an agent commission on the sale of your new home and you will have to pay stamp duty on the purchase of your next home.  

Most people hold a home long enough to pay off some of their mortgage and have had some capital growth.  However selling costs always reduce the equity that you have available and if you sell in the short term the selling costs will reduce your capital investment.

PROTECTING YOU HOME AND INCOME

One of the most important first home buyer tips is advise you to take out full comprehensive insurance on your new home, if you do not and something happens you may end up owing money to the bank without a home to live in. You can also take out insurance to protect your income or insure your loan repayments.  The old saying “Plan for the worst and Hope for the best” applies here.

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