Buying your first home is a big move, and is something you don’t want to rush into. It can be an emotional time, so it’s important to arm yourself with as much information as possible to help you with those tentative first steps.
Many people decide they want to buy a home. They get excited and picture themselves dancing around their modern kitchen, entertaining guests on the deck, and watching their children grow and make memories. Then, they hit a brick wall. Finance, council rates, stamp duty, parking, school zones, how does it all work?
If you have been obsessively watching DIY shows and walking wistfully around Bunnings looking at paint swatches, ask yourself these questions to lay a solid foundation for home ownership.
Can You Afford Your First Home?
When planning to buy their first home, many people fall into the trap of focussing on the deposit and forget about the associated costs of home ownership, including the actual purchasing process.
Many of the big banks have online calculators that will help with estimates on loan repayments, taxes, government fees, legal fees, even insurance. Utilise these so you hit the ground running when you start searching for your dream home.
Stamp duty is an often overlooked cost, and it can make quite the dent in your deposit. As an example, a $500,000 home in South Australia will see you pay in excess of $25,000 in stamp duty and conveyancing costs. Ouch!
Can You Compromise On Your First Home?
Sure we’ve all seen the movies, you decide to go it alone and just pack a few boxes into a removal van and move into that inner city loft with a million dollar view, or take a sea change and roll up to your cottage on a lake. Simple, right?
Often there needs to be a compromise made when buying your first home. What are your non-negotiables, and what can you live without? Make a list, and get really specific.
Is the school zone important? Do you want a yard? How many bedrooms? Carport or garage? Walk in wardrobes? Pool? Close to shops? Public transport within walking distance? Work commute times? These are just some of the factors you need to take into account when buying your first home.
An added bonus of planning your ‘must haves’ and ‘can live with outs’ is time saved. By making this list, you will automatically rule out certain properties that don’t fit your criteria, meaning less legwork on weekends and more time to focus on finding the home you really want.
Can You Emotionally Handle Your First Home?
Renting can often be a pain, with annoyances such as regular inspections or not being able to have a pet. However, when the oven breaks or the roof leaks, you call the real estate company and they send someone to fix it, job done.
When you’re the homeowner, it’s all on you. You need to make sure that you’re prepared to take the challenges of home ownership both financially and emotionally.
A key to being emotionally prepared for buying your first home is to ensure you’re making this choice for you. If you’re buying because your friends or family are saying you have to, or you feel like you’re at a certain age that you’re supposed to buy a home, then stop, and take stock of the things you value most in life. While others may be pushing you towards home ownership, you’re the one who is responsible for making the mortgage repayments.
Buying your first home can be an emotional and financial rollercoaster, so check in with your feelings and make sure that this is a journey you’re 100% committed to embarking on. For many people, buying their first home is one of the most rewarding experiences of their life.
If you’re ready to buy your first home, contact us today so we can help get you into your first home fast.