First home buyers, buying your first home is generally the biggest financial commitment of your life. Of course, it’s absolutely normal to feel a mix of emotions… Are we doing the right thing? Can we actually afford it? Should I buy close to the city? Should I wait longer? What if the market changes?
As property advisers, we understand the concerns that surround you. It is our role to help manage this process. Once we ascertain your objectives, we can then source the right property that is tailored to your lifestyle and budget. Please feel free to contact us for a free consultation, we can set a timeframe and realistic budget that will place you into the right direction.
In the interim, here are 5 x Important steps to buying your 1st property
1. Set Your Goals
To accomplish your property needs, you need to establish some primary objectives. Are you purchasing a property for capital growth? Is it to be held for the short or long term? Break down your objectives into a few important criteria and place a deadline and/or date when you want to achieve these goals. You may not meet every goal you set out, so outline a few very important goals that you will not alter and ones that may be changed if other goals are well aligned.
2. Establish a finance approval
Before searching a property, determine your borrowing capacity. Ensure you are looking at properties that are within your budget and work within those parameters. By seeking a pre-approval for a loan, you will have a clear understanding of just how much you can afford. A mortgage/finance broker would be my suggestion. They can ascertain your circumstances and review a variety of options rather than just one bank or loan product.
3. Set up a budget
You have a pre-approval or an indication of your borrowing capacity, but identify what the likely loan repayments will be. Check that you can cover the full loan repayment before proceeding. Other factors that you need to take into account are the estimated outgoing expenses of the property. Can you afford these with your personal budget?
4. Research the property market
Take some time to review the property market. Many investors don’t acknowledge anything outside of a 4-5kms radius of their family home. Diversification is important, but researching property can be difficult and time consuming. I suggest you seek property advice from a licensed estate agent who is qualified and knowledgeable. A buyer property advocate (like myself) is an excellent way of ensuring your investment decisions are fundamentally formulated rather than emotionally invested.
5. Buy intelligently
Buying your first property can be overwhelming and quite nerving. No one wants to lose money. Use your ‘head’ not your ‘heart’. Get professional advice, follow the above criteria, seek support from family and we are sure you’ll make the right decision.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
July 2017
