If you are ready to take that huge step from being a tenant to becoming a homeowner, there is much to consider. While it is an exciting time, this is going to be the biggest financial commitment you have ever made, and with that in mind, here are a few tips to ensure that everything goes smoothly.
- Mortgage Pre-Approval – There’s little point in house-hunting until you have mortgage pre-approval, as no property owner will take you seriously, unless, of course, you are paying cash! Find a mortgage broker online and give them the information they require and you will very quickly learn how lenders feel about you. You are advised to clear up any outstanding debts prior to applying for a home loan, as this will ensure that your credit score is decent.
- Building Inspections – It is paramount that you have any property inspected by professionals, and with affordable Jim’s Building Inspectors in Perth, you can rest assured that your new home is, in fact, in good order. Some of the inspections on offer include, pests and termites, structural integrity, damp, and asbestos inspections, and finding an online building inspector is cheaper than using a referred inspector from your broker, so you can save a little money.
- Crunch the Numbers – There are a lot of costs involved in real estate purchase, with tax and stamp duty, then there are legal fees, relocation expenses, and of course, furnishing the new home. If you make sure you have covered everything, you can avoid the tress of running out of money, and if your dream house is a bit too expensive, look for something smaller, with a lower price tag.
- First-Time Buyer’s Grants – Depending on what state you line in in Australia, you will receive some financial assistance from the federal government, which might be stamp duty waiver, although this depends of the value of the property. The mortgage broker or real estate agent can help you to apply for the first-time buyer grant, which will save you a considerable amount of money. If you are looking at real estate in Brisbane, be prepared to pay top prices, as this is a premier location.
- Looking at Properties – You should not rush, as there are many properties on the market, and when viewing a property, make notes on the pros and cons, then you can compare after having viewed a few houses. One must be realistic when buying our first home, and it might turn out that you will have to settle for a property that doesn’t tick all your boxes, yet as time passes, you will create wealth and one day, you can upgrade. Click here for some Australian government information on buying property, which is very informative regarding what you can and cannot do.
- Transparent Fees – Whether dealing with a real estate agent or mortgage broker, make sure they are fee transparent, which avoids any nasty surprises later. Most companies will be transparent regarding their fees, and if they are not, this should set alarm bells ringing.
If you have done your homework and can afford the purchase, owning your very first home is the start to generating the wealth that will ensure a secure retirement.