Buying a home can be overwhelming, especially if it is your first time. From finding a perfect home that suits your needs, choosing a reputable real estate agent, finding a money lender, and competing with other buyers, things can be a little bit tough especially for the first time home buyers. But with this guide, we are making it easy for you to navigate the entire process even if you are buying your first home.
Here are the top 10 tips for home buyers you should know
1. Research Widely
The first and most important thing that first time home buyer should do try to understand the market. The real estate industry in Australia is very complex, and there is lots of information about buying a home you need to know before committing your money. You need to understand how the property market work and more so what drives the prices. Check when is the best time to buy a house so that you don’t buy when the prices are hitting the roof. Learn how to value a property. Therefore, you need to do lots of research beforehand.
2. Set Your Home Buying Goals
After researching and learning how the real estate works, it’s time to set goals. Setting goals are important as they will help you to roll out the rest of the buying process. First, you need to choose your dream house. The good news is that the Australian real estate market is offering you a vast collection of homes to pick from. You can choose a new ready-built house or a house and land package. After you have found your dream house, you can start the process of buying that house.
3. Establish a Budget
Real estate industry has something for everyone depending on how much they are willing to spend. That is why it important to establish a budget for a home that meets your need or your dream home. After you have picked from the available options, start establishing budgeting for the house. Put everything in the budget including the cost of the property and other additional costs such as stamp duty and conveyancing fees.
4. Save up Deposit
If you are buying a home with loans from mortgage lenders, banks and other financial institutions, you need to make a down payment. In Australia, you need a minimum deposit of 20% of property value. This money should come from a dedicated saving account and any you pick lender will confirm if the savings are genuine. Therefore, if you are relying on home loans, you must have a saving plan for the home deposit or the down payment. The bigger the deposit, the higher the chances of getting a home-loan lender. The trick is to start saving early. Set your saving goals to ensure consistency.
5. Improve Your Credit Rating
Credit rating is one of the crucial factors that can make it easy or difficult to get a home loan. Moneylenders are very cautious with people they loaning money and credit rating is one of the tools they use to determine customer’s creditworthy. Therefore, if you want to buy your first home with ease, lower your debt as much as possible. The trick is to focus on achieving the best credit rating. Pay off credit cards, outstanding debt nit the highest possible score.
6. Shop for Lender
After saving enough money, and you’re ready to kick off the process of buying a new home, start with shopping for a money lender. Some buyers start with finding the house first and then the lender which is wrong. It should be the other way round. First shop for a lender to get mortgaged pre-approved. With that, you can buy the house without delays from loan approval. Otherwise, you will not be able to compete with other buyers. There are many home loan lenders in the market, but if you are buying your first home pick the best deal and a good reputation.
7. Location of the Home
With the mortgages pre-approved, now you can find your dream house or the house you’ve been saving for. You will find a range of option but the most important thing to check the location. It is wise to buy a home in a neighbourhood that is near good public utilities and infrastructure. Look for good roads. You should also select an area with good schools, shopping centres, and government offices. All these facilities will make life easier in your new home.
8. Building Inspection
Another big mistake that first time home buyers make is failing to do a building and pest inspection. Don’t trust all the information that a salesperson or broker is telling. If you have found a house and you like it, do a thorough building inspection. This form of inspection will inform you if the building is up to the standard and the possibilities of pest attacks. That’s how you avoid buyer remorse once the transaction is complete.
9. Stalk the Neighbourhood
Stalking the neighbourhood the best ways to know the kind of home you are likely to buy. Many home buyers have become completely devastated because what they thought was a perfect home never turned out to be. That is why it important to visit the neighbourhood all times of the day to see the activities that go around. Are there people living in the areas? What about the issue of security? Visit even in the night to get the real picture of your to-be neighbourhood.
10. Never Disclose your Budget
Lastly, never disclose your budget to selling agent. The secret is the key to saving money while buying a home. Note that the property price is about negotiation. If the agent knows your budget, they will stretch to the limit. They are well skilled in negotiating to get the best deal out of each sale. Keep them guessing, or they will milk you dry.
With these top 10 tips for home buyers, you can never go wrong. You will not only get your dream home in a perfect location, but you’ll also get it at a good price. You’ll also find the process straightforward. So if you are buying your first home, apply these tips, and you will be impressed by the results.