First Home Questions

Here are some critical questions that first home buyers should consider before becoming serious about buying.

 

  1. Who should I speak to for advice? There are many professionals out there, and you’d be wise to engage with an accountant, mortgage broker and potentially even a buyer’s agent early on in the piece. Buyers agents are employed and paid by you (the buyer) to support you in your purchase. My First Place are sourcing agents; we support our buyers in finding their property and are paid by the seller, but are independent of the seller.
  2. What time frame am I looking at? Are you looking to buy next month? next year? the time frame will enable you to plan your strategy and assist in what kind of purchase you can make (completed / off-plan etc.)
  3. What deposit do I need to have? This is a question to be answered by your mortgage broker based off a specific figure to purchase. If you only have a small deposit, it’s time to read about LMI (Lenders Mortgage Insurance) and LVR (Loan Value Ratio)
  4. How much can I borrow? An online calculator can quickly help with rough estimates around what you can borrow. A broker can further assist you with this.
  5. How much can I afford? Use an online budgeting tool to work out what your weekly repayments are that you can afford. Remember; there is a difference between what a bank will lend, and what you can afford to service if you intend on maintaining your current lifestyle.
  6. What type of property am I looking at? Are you looking for a run down property to renovate, or a new build? An apartment or a house? How many bedrooms? Get a clear picture in your mind about the type of property you’re after, and what you’ll need for your own situation.
  7. What suburbs am I interested in? Look to the areas that you are keen to live in. Look at what is selling and the prices, and see whether what you can borrow matches up with the area and the type of property you need.
  8. Which factors am I prepared to negotiate on? What can you live without? Could you move a couple of suburbs over to get what you want? Could you make do with a smaller property? If you can’t afford it, unfortunately you will have to compromise on something.
  9. Do I need pre-approval? It’s best to get pre-approval before you are seriously searching. Without it, you may spend months looking in the wrong direction.
  10. Have I thought about the risks? Taking on any amount of debt comes at a risk to you, and with a substantial amount of debt comes a substantial amount of risk. While you may have heard the term “safe as houses”, buying a property leaves you open to the mercy of the market.
  11. What grants and assistance are available to me? Look into what is currently available to you in terms of first home buyer grants and stamp duty exemptions. My First Place have extensive information for all First Home Buyers and grants. Contact us today to discuss.

Here at My First Place, we’re happy to help you through the process of answering this for yourself.

Contact us today to start your own path to purchasing your first home.

 

You can find the full article on Property Observer.

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