24th June 2014: Buying Your First Home

In the past eighteen months, many first home buyers have missed out on purchasing as already established investors have seized the ideal market conditions to increase their property portfolios. First home buyers can, however, still break into the market by considering the property features that are in high demand by investors.

Essentially both investors and first home buyers seek affordability, although investors are generally looking for a specific type of property and therein is the opportunity for first time buyers. First home buyers should consider areas where prices are comfortably below the median with more modest levels of growth as investors seeking capital gains from renovations look to avoid over-capitalising in these areas. First time buyers should also be looking in areas where rental amounts and vacancies are sustainable.

With interest rates at record lows and banks well placed to provide funding, it's an ideal time for first home buyers to join the property market.

We have compiled a few tips to help get you started:

Know what your financial position is
The first step is to have a clear picture of your current financial situation. You will need at least a 20% deposit to avoid paying mortgage insurance as well as meeting a number of requirements set by the bank. There are different types of loans to consider as well as property valuation, stamp duty, legal fees, council rates and more.

Familiarise yourself with the market
Get in touch with the latest trends in the property market. As a first home buyer it's important to learn as much as you can about the economic indicators and projections. Keep an eye on property reports in the paper, on the REIV website and the Fletchers Forum.

Choose your location
As a first time buyer you will primarily be driven by a budget. It's important to know what you can afford and weigh up what's important to you. You may only be able to afford a two bedroom apartment in your dream suburb but a three bedroom home with a backyard not far away. Get a clear idea of what you can afford and then develop a list of criteria to use when searching for a home.

Attend open for inspections
When you go to open for inspections, make sure you take time to speak to the real estate agent. They have a wealth of knowledge about the property market and the area you are looking to buy in and can give really useful advice. When you find a property you like, go back and inspect it a couple of times to get a more accurate impression. Take note of any structural issues like sloping floors or cracked walls and listen for noise and traffic levels.

If you are thinking of purchasing your first home or would just like to have a chat about the property market, please get in touch with one of our highly experienced agents today.