When you are ready to make your first home purchase, this is a milestone in a person’s life and, as you would expect, buying real estate is a costly business. It can seem like a real ordeal, what with land title deeds, property surveys and finding a mortgage lender, which can be very stressful and with that in mind, here is an overview of the process of buying your first home.
Saving the Deposit
This can be an uphill struggle, which can be as much as 10% and if you have a partner, sit down together and calculate how much you can save per month, then you have a target figure to work towards.
Sourcing a Home Loan
This can be a very stressful experience that doesn’t always a good ending; you are advised to talk to a local mortgage broker, who has associations with many different lenders and can usually find a mortgage that suits the client. The first thing to do is obtain mortgage pre-approval, as no seller will take you seriously unless you have pre-approval and a mortgage broker can help to do this.
First Time Buyer Concessions
The good news is that in Australia, first time buyers do not have to pay stamp duty and there might be further concessions, depending on your status. Talk to CK Lawyers, conveyance solicitors who can facilitate the purchase and make sure that you receive the concession you are due.
Crunch the Numbers
Prior to committing to anything, it is crucial that you are aware of all the expenses involved in purchasing real estate and there are quite a few. Aside from the conveyancing fees, there are land surveys, and let’s not forget moving in costs, which are inevitable. It is more difficult than ever for young people to be able to get their foot on the property ladder, even with government assistance.
Real Estate Agent
Of course, you will need to use the services of a real estate agent in order to find the ideal property and a Google search will help you to source top agents who have many fine properties on their books. There’s nothing wrong with approaching multiple agents and seeing what they have on offer, just make sure that you have mortgage pre-approval before you start looking at properties.
It’s Tough at First
Ask any older property owner and they will gladly confirm that the first few years of property ownership are tough. The high rates of interests make it a challenge to come up with the monthly repayment, but the good news is it does get easier and when you have made that final home loan payment, the property belongs to you!