5 Things That Every First-Time Home Buyer Needs to Know
Buying a house is a nerve-wracking experience if you’re a first-timer and aren’t sure what to do or expect. There are ways to maximise your investment and make the home buying process less stressful. We’ve listed below some tips that will help you as a first-time home buyer:
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Tip #1: It’s never too early to save for a house deposit
In 2023, the Australian Government implemented the Home Guarantee Scheme (HGS), which provides support to home buyers who have at least a 5% house deposit. But, while this scheme is undeniably helpful, there are limited places available, and there’s no guarantee that you’ll be chosen. Because of this, you must start saving up for a house deposit as early as possible. Most lenders will ask you to have a minimum of 20% deposit, but it’s best to aim higher so you can borrow less and keep your interest rates low.
Tip #2: Aesthetics aren’t everything
The perfect property isn’t just beautiful; it should also provide a comfortable living space while helping you maximise your equity and investment. So, when buying a home, don’t just solely focus on aesthetics; instead, consider other equally important factors such as the property’s location, structural condition, and market value. This way, you’ll avoid buying a house that looks perfect on the outside but actually is a money pit.
Tip #3: Getting mortgage pre-approval should be prioritised
Experts agree that buyers should obtain conditional home loan approval before shopping around for a house. By doing so, you’ll know how much you’re pre-qualified for, and you can streamline your search on houses within your budget range. You’ll also show sellers that you actually have the capacity to buy , which can make your offers more attractive and help you secure your dream house.
Tip #4: Working with buyers’ agents will be favourable for you
These experts have your best interests at heart and will obtain the best possible deal on your behalf. Specifically, your buyers agent in Sydney will look for houses that meet your criteria (including hidden, unlisted properties), and they’ll negotiate with the sellers and their agents for the ideal asking price. They’ll also help you gather the required documents and ensure that the paperwork you’ll submit will be 100% complete.
Tip #5: Property inspections are non-negotiable
Some sellers attach sentimental value to their home and become blind to its faults, while others know that their house is in bad shape but don’t really care as long as they get paid. Since there’s always the possibility of dealing with either type of seller, you must hire a property inspector who’ll help you find out if the house has any major problems that need costly repairs. With their help, you can avoid buying a property that needs a lot of work and will eat through your savings.Buying a house for the first time is often daunting and overwhelming. Fortunately, you can use these tips to rise above the challenges and eventually purchase your dream home!
