Guidelines for first time buyers

The very first step when entering your first home buying journey should be to speak to your local mortgage broker. They will assist you with all the points listed below and will in most cases come at no cost to you as brokers are paid by the lenders.

Where to Go for a Guide:

1. Government Resources: The Australian Government’s MoneySmart website offers a comprehensive guide for homebuyers, including information on saving for a home, understanding costs, and finding the right mortgage.
2. State and Territory Resources: Each state and territory in Australia has its own set of rules and resources for homebuyers. For example, the New South Wales Government has the ‘Buying a home’ guide on the Fair Trading website, and the Victorian State Government has resources on the Consumer Affairs Victoria website.
3. Financial Institutions: Banks and other lending institutions often provide detailed guides for first-time homebuyers, explaining the steps involved in obtaining a mortgage and purchasing a home.
4. Real Estate Websites: Websites like realestate.com.au and domain.com.au not only list properties for sale but also offer extensive advice sections with articles and guides on the home buying process.
5. Professional Advice: Consider hiring a conveyancer or solicitor who specialises in property law to guide you through the legal aspects of purchasing a home.

Tips for First-Time Home Buyers:

1. Start Saving Early: The larger your deposit, the better your loan terms could be. Aim to save at least 20% of the property’s value to avoid paying Lenders Mortgage Insurance (LMI).
2. Understand Your Budget: Before you start looking at properties, use online calculators to get an idea of how much you can borrow and what you can afford to repay.
3. Check for First Home Buyer Incentives: The Australian Government and state/territory governments offer various grants, schemes, and concessions for first-time buyers, such as the First Home Owner Grant (FHOG) or stamp duty concessions.
4. Get Pre-Approval: Obtaining pre-approval for a loan gives you a clear idea of your budget and shows sellers that you’re serious about buying.
5. Research the Market: Attend open homes and auctions to get a sense of property values in your desired area. Understand the market conditions, whether it’s a buyer’s or seller’s market.
6. Consider All Costs: Remember to account for all costs associated with buying a home, including stamp duty, conveyancing fees, building inspections, moving costs, and home and contents insurance.
7. Be Thorough with Inspections: Always have a professional building and pest inspection done before finalising a purchase to avoid costly surprises later on.
8. Think Long-Term: Consider not just your current needs but also how your needs might change over time. This can affect the type of property and location you choose.
9. Negotiate: Don’t be afraid to negotiate on price, terms, and conditions. It’s part of the buying process, and there may be room to manoeuvre, especially if you have done your research and understand the market.
10. Stay Level-Headed: It’s easy to get emotionally attached to a property, but try to remain objective. Make decisions based on your budget and needs rather than emotions.
11. Plan for the Future: Consider the potential for property value growth in the area and any planned infrastructure that may affect this.
12. Legal and Contractual Advice: Engage a conveyancer or solicitor early in the process to help you understand the contract and your legal obligations.