Friday, 28 February 2020
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A Guide to First Time Home Buyers

Written by Posted On Monday, 05 August 2019 00:26

For a young professional couple, getting their feet on that first rung of the property ladder is indeed a challenge, and with land prices constantly rising, it can seem like an impossible dream to actually buy a house. If you would like to take the plunge and purchase rather than rent, here are a few tips to help you in your quest to become a land owner.

ü  Saving the Deposit – This is a hurdle that many young people find very challenging, and with most lenders requiring a 10% deposit, we are talking about a considerable amount of money. In order to do this, one first needs to establish an amount, then, with some careful planning, set yourself a timeline in which to achieve this. Many people take on a part time job, or put in as much overtime as they can, and by cutting out a few non-essential luxuries, saving becomes a little easier and more realistic. The important thing is to set yourself a target, and a realistic timeframe, which will help you to stay motivated while putting your savings away.

ü  Government Concessions – There are some states in Australia where the local government offers stamp duty concessions, providing the value of the property is within a certain limit and that the property is used solely for residence. The most qualified person to help you regarding local government concession on property purchases is a conveyancing solicitor, who can also ensure that the property you are looking to buy is free from financial burden and is of sound construction.

ü  Crunch the Numbers – There are many expenses when buying a property; legal fees, stamp duty, relocation costs, to mention a few, so it is important that you have calculated the costs and are sure that you can afford to buy the property you are looking at. Regarding the mortgage, you should seek preapproval from a lender prior to actually house hunting, as no buyer will take you seriously without mortgage preapproval.

ü  Be Realistic – Of course, you would love to buy your dream home, but your first property acquisition is likely to fall far short of that. Once you have some equity in the property, then you can think about selling and upgrading to something more to your liking. Shared ownership is becoming popular, as this gives you more purchasing power; just make sure that you know the other party well and that they are trustworthy. A lawyer can draw up the contract and with several salaries coming in every month, you can afford to look for a more expensive property.

While it might seem a daunting task to get things together for your first property purchase, as time goes by, it does become easier, and 15-20 years from now, you will be very glad that you made the effort when you did.

Get mortgage preapproval then source an established conveyancing solicitor, preferably one that has fixed and transparent fees, then you can begin to search for the right property to get yourself on the ladder to accumulated wealth.

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