If you’re a first home buyer taking the plunge, chances are you have a few questions or queries buzzing around in the back of your mind. It can be quite overwhelming and difficult to know where the true answers lie.
Luckily, with compiled a list of the most common questions frequently asked by typical first home buyers.
1. How much money will I actually need?
Generally, it’s recommended that you save a 10% deposit of the purchase price. In my personal experience, I would allow approximately 20%. There’s also going to be legal and conveyancing fees, building inspections and stamp duty tax.
2. Should I save up more first? Or buy now with a smaller deposit?
It usually benefits buyers the most to begin the home buying journey as soon as your personal financial position allows to do so. It is important not to try and purchase a property while interest rates are at all-time lows, whilst simultaneously stuck in a growing market.
3. Where is best to buy?
This almost completely depends on the needs of the buyer, or for investment purposes, the demographics associated with the people potentially renting the home.
4. I don’t know much about the suburb I want to buy in. How do I find out more information about the area?
Online research is usually the best place to start. Secondly, if you’re still particularly keen, there’s no harm in going to have a look for yourself. Open houses on weekends are a great way of speaking with the agents and getting some advice from a knowledgeable, primary source of information.
5. How do I know what the property’s really worth?
Comparison analysis is your best bet. Research and compare similar properties in the same area with similar features/characteristics. Some online research and real estate websites provide tools to assist you with this.
6. Do I really need to organise and pay for a building inspection?
It is thoroughly recommended that if you don’t have the expertise to assess the condition of the building, you will definitely require a building inspection.
It is worth paying for this now, then finding out down the track that your home is full of termites, the structural integrity is compromised or worse.
7. Apartment or house? Which should I buy?
Again, this really depends on your personal needs and preferences. Neither one really come with any financial benefits over the other. It basically comes down to what you’re happy with, and your lifestyle.
8. What if I can’t afford a home on my own?
You can most certainly by a home splitting the ownership with a friend or family member. Financial organisation and understanding is required to sustain a successful partnership associated with join purchasing or joint-ownership. Be sure to take absolute everything into consideration with all parties involved.
By now, at least a few of your concerns should have been put to bed. Once things are organised and in motion, you’ll come to realise the process isn’t all doom and gloom.
With a little bit of patience, guidance and advice, securing you first home is sure to happen.
Happy house hunting!