If buying a house is your first experience, you may find it interesting but on the other hand find it confusing too. In fact, it relates on how much knowledge a person acquires about house buying. The lack of experience may make someone feel unconfident in buying his first house as there are many things that a person may need to know. That is why this article is provided as a guide for Australian people who wants to buy their first home, whether it is intended for living or for property investment. Here are some tips for your consideration:
- Consider a mortgage broker
It is better for having a mortgage broker the first time you buy a house. With the help of mortgage broker, finding the right home with your situation will be easier. He/she will show the ropes and explain all the features available, and often help you get the loan as they know the right approach with the banks.
- Plan a budget
Planning the budget and stick to it is one of the most important things in buying a house. Organizing a home loan that you will be able to afford each week makes your goal of having a home to be more realistic.
- Know limitations
Buy a home in right price range is the wisest advice that one should consider. Some people keep struggling to buy their dream home while have no adequate money in their pocket. They keep thinking that everything will be alright as the interest rates are ow. However, being prepared for the worst is always safer in a big investment. What if something was to happen in meantime and the interest rates turned against you? Your savings money will soon be used only for covering the debt on your house.
- Save the Biggest Deposit that a Person Can Put Together
Put a deposit will serve in two ways. First, it will show potential lender when a person is disciplined in financial over a period of time, and second, the bigger the deposit the larger the equity a person may have in the property right from the start. This helps people pay less interest and allowing you to draw on that equity sooner for your next investment.
- Apply for the first home owner grant early.
The best timing for applying First Home Owner Grant is at the same time when a person applied for home loan. A person can lodge his grant application through most lenders, if they are an authorized agent and able to receive it. If a person does this, it will be processed faster than if someone had sent it directly to his/her relevant state or Territory Revenue Office, the government authority that administers it.
- Rid Excess Debt.
Finish all debts before starting a home loan. Do away with any credit cards which are not really needed, finish off car payments; even sell it when it has to, then change it by buying a cheaper car. This idea is intended to make the home loan become top priority.
- Be a Cynical Buyer
Do a property research about other houses in the same locality. Are those houses valued around the same price with your new house? Moreover, do not easily believe about everything told by home seller. Do your research for less surprises later.
- Receive all that you are eligible to receive.
Make sure to get what is available in the locality when buying a first home, since different states and territory governments also give their own incentives to first home buyers in the way of grants of their own, as well as waiving or giving generous concessions off the cost of stamp duty imposts.