You've been searching high and low for your perfect first home; analysing the location, price and floorplans of the properties you come across—you think the facts are all there! Before you make a decision however, it's best to seek some advice from people who have been in your shoes before, so you can ensure the final decision is the right one.
To help you begin, continue or finalise the search for your first home, we have compiled some tips and tricks from our agents Kate Garvey and Steven Zervas who understand exactly what you're going through—because they've recently been there!
What's the best advice that you received before buying your first home?
Kate: "The best advice I received before buying my first home was when calculating how much you can afford always do the following: crunch the numbers of how much your repayments would be if interest rates went up to 15%. If you can still pay your monthly repayments at that cost, you can afford it!"
Steven: "The top advice I received was to save up at least 20% deposit to avoid lenders mortgage insurance, buy the best house I could afford and shop around for the best home loan rate—don't be afraid to look outside from your normal bank! Get out to as many auctions as possible to see who is bidding, how they are bidding, the vibe of the crowd and get to know the agents."
What tactics did YOU implement?
Steven:
• Buy the best home you can afford
• You may need to make some compromises—your first home is not your dream home
• Have a short and long term plan—your first home will not be the last home you will ever own
• Get into the market as soon as you can. History shows that property prices increase over the long term; what may seem like a lot of money now won't be in 5/10/20 years time. You will find a way to service the loan—just get in the market!
• It's always a good idea to buy close to shopping facilities, a freeway and public transport if possible
• Always ask the agent if the vendor will sell before auction
• Open for inspections are a great insight into whether a home is popular or not
37 Kemp Avenue, Thomastown – a property currently listed with Fletchers
What are your top tips for first home buyers?
Kate: "Ensure you get something with land. I would suggest thinking outside the box; invest in another location like Adelaide or Reginal Victoria to get into the market."
Steven: "Be careful when buying into a body corporate complex. Find out exactly what you are paying fees for, and get a building and pest inspection. Always get a legal representative to check the contract and section 32. Don't be afraid to ask the agents lots of questions and even get them to send you recent comparable and relevant sales around the property you are interested in. Don't forget that stamp duty is around 5.5% on top of the sale price!"
Ready to tackle the task of buying your first home? Have a look at the properties we have recently added to the market, or contact Shore Financial on 1300 416 700 for obligation free advice on home loans.
by Steven Zervas in Miscellaneous