Buying your first home should be exciting. However, with the increase in wage to house purchase ratio, the need for high interest mortgages is becoming ever more real. This can put an added strain on your finances if you aren’t careful and could result in added debt. However, if you focus on sticking to your budget (no matter how small this might be), you should be able to navigate the property market successfully. Consider your needs and wants, and draw up a list. When you are ready, begin your research and consider the sorts of areas that you are keen to put down roots.
Purchasing a home is a massive commitment, and you will be taking out the largest loan you will ever have in your life. For seasoned renters, this means committing to one location and one property for the foreseeable future. Gone are the days of flitting from one humble abode to another on a whim. Now it’s time to put down roots and invest in an asset.
Location
It’s imperative that you find a location that you fall in love with. Just because the properties in an area are ultra cheap doesn’t mean you should buy one of them. Take a look at real estate agents like William Pitt and see the vast array of properties they have for sale. You might fancy an area abuzz with cafe culture, and cultural diversity. Alternatively, you might seek a quieter pace of life out in the suburbs.
Most importantly, research the basics of a location. What are the crime rates like? Are there good schools? Is there a pleasant local scene? And don’t forget to check out the property forecasts for the previous five years. You want a property that has seen price rises steadily in the past so that you can be sure that you won’t be sat on a pad with negative equity.
The Property
You may choose a condo, a detached residence or an apartment for your first home. Your budget will dictate much of this. However, it pays to look at a range of properties. If your budget is tight, don’t recoil at the thought of purchasing a fixer upper. These humble abodes can be little gold mines as people are reluctant to buy them for fear of hidden nasties. However, if you have the creative vision, you could hire a surveyor to give the property you are keen on the once over, to check for structural issues. With any luck, you can pick up a bargain in an excellent location, renovate the home over time and outperform the market.
Home Loan
Make sure that you can afford the repayments on your home loan and that you secure the services of a top quality property lawyer who will look over the small print for you. You might be wise opting for a fixed rate mortgage initially to provide you with the added security of knowing that your repayments won’t change even if the financial markets fluctuate.
Follow this simple guide, and you will soon be enjoying your first home.