Buying a new home is one of the biggest investments youth will ever make in your life. As much as it brings excitement, there’s always a certain risk of going wrong with your purchase. Therefore first homes buyers need to know what’s going on in the property market at any given time, in particular changes to legislation, rules and regulations that can work in their favour so commit to spending time researching news items on a daily basis. Plus for an investment this big, it is important to get off on the right foot to save yourself from heaving buyer’s remorse all your life. So, here are a few things you – the first-time home buyer – must take in your stride.
- Seek help from a mortgage broker.
If you are looking at finance options for your new-home purchase, it is advisable to consult with a mortgage broker to help you get into the right home loan as per your needs. A mortgage broker will charge a nominal fee but it is worth the help he will offer.
- Plan a Budget and Stick to it
Planning a budget beforehand is really important. Before getting into any home loan, you must calculate the monthly EMI you can easily afford without compromising on other personal and family expenses. If you are the sole bread winner in your family, it is advised to keep contingency funds aside. Needless to say, take friend’s opinion or discuss the matter with a family member to form a clear picture of the home you can afford.
- Know your budget constraints
Sometimes, it is better to know your limits and abide by them than to get carried away and take a wrong step. While you may be able to convince yourself that the struggle is short-lived and benefits are long-term, it could turn out to be the other way around. What if things didn’t go as planned? What if your family expenses surpassed your income? You could put yourself in a bigger trouble or might lose out your home to bankruptcy.
- Use your maximum savings toward down payment
This will reduce your monthly instalment and will give you larger equity in your property. Also, this will give your lender the confidence that you can exercise financial discipline throughout the loan tenure. You will end up paying off the entire loan early on, with lesser interest.
- Never Delay Your First Home Owner Grant
The moment you apply for your home loan is the most opportune time to apply for First Home Owner Grant. You can send your grant directly to State or Territory Revenue Office or through any authorized agent. Your grant will be processed by the time of settlement, but in case you miss out, it is advised to get it processed within 12 months from the settlement.
- Make sure to clear any existing debt
Most first-time home buyers make the mistake of applying for loan while still heaving existing debt. Your home loan should be your top priority, so close all other loans to save yourself the trouble.
- Be a Discerning buyer.
Use your discretion before believing anything that is being told to you. Do your homework before looking around for your prospective home. Most NSW strata management services have revealed that it’s easy for even a well-maintained building to attract harmful pests, so make sure to carry out building and pest inspection before pouring your money in. Look for options and keep looking up until you are fully satisfied, since it’s a one-time purchase for most people.
Buying a new home doesn’t necessarily means that you will have to pay the quoted price. There’s always a room for negotiation and you may also enquire about any concession or grant that is available in your state.