Buying your first home? Here is your official guide to what you need to know about the Australian housing market.
Everyone wants to grow up and buy their own house. It is right at the top of that bucket list of life goals, alongside getting married and starting a family. Even though it is something that most Australians will have to deal with in their lives, buying a home is still incredibly complex.
So, we put together this first-time home buyer’s guide to save you some confusion. Let us start with what you should know before the sale and work our way up from there.
How to Buy a Home for the First Time
When you buy a house for the first time in Australia, there are certain things you need to know. We listed most of them here for your consideration.
How to Get Funding
First, you will likely need funding to get enough money together to buy your home. To do this, check out a good loan firm, such as quantumfinance.com.au. They should be able to help you out with scraping more money together to buy that special home. You should also find out more about the First Homeowners Grant for extra funds.
As to how much you will need, a deposit is typically 5-20% of the full cost of your house. On top of this, you will need money to decorate, transfer your details on official documentation, and set yourself up in your new place. Calculate how much you can afford to spare each month, then work out a mortgage based on that amount.
Let us talk home buying now that financing is out of the way. What should you keep in mind when buying your first home in Australia?
Decide What and Where to Buy
Once you know where the money is coming from, it is time to look around for your dream home. You can get a home through private sale with another seller, in which case you may want a realter to work on your behalf.
You may want to go to auction to buy a house. Often, this involves lots of planning in advance. Sometimes, you might even be bidding on homes that you have not seen in person! While this is exciting, it is a risky way to buy your first property. We suggest lots of advanced preparation and surveys held before auctions, just to make sure you know what you are buying.
You might choose to buy through making an expression of interest and setting out to negotiate a tender. This works akin to how personal sales do; however, you will be bidding against competitors.
Things to Check Before You Buy
There are other things you should always check before you agree to buy, bid, or put in an expression of interest. These include (but are not limited to) the following:
- Is it in a good area?
- Are you near enough to work/school?
- Have you had an inspection, and did it pass? Do not skip this step no matter how much a seller tries to convince you to. The only way to know you have not bought a dud is an inspection.
- Can you park near your house?
- What are the neighbours like?
- Does it have main road access? IS there traffic noise as a result?
- Are there neighbourhood or building rules you need to know about?
If you are happy with all the above, then you can agree to the sale and have your lawyers draw up the sale contract.
The Contract of Sale
This is the final stage of the home buying process asides from moving in. Review this document with a fine-tooth comb to ensure that it is exactly what you want. If there are any surprise extras in there, be sure to bring it up with your lawyer.
Enjoy Your New Home!
All that is left now is to wish you good luck. We hope your new home is the perfect fit.
Image Credit – Imagesource.io