What to Consider Before Purchasing Your First Property
Buying your first home is an exciting time for many Australians. However, it is easy to get swept up in the excitement and forget that it is one of the biggest purchases of your life. To make sure you make the right decision for yourself and your future consider these questions:
- Why do I want to buy a property?
Purchasing a property may seem like a sensible life step, but you need to make sure the decision is right for you and your individual circumstances. It is easy to feel pressured by friends, family members and the media that owning a house is the great Australian dream, but is it your dream? If it is, is it your dream right now?
- Where should I buy?
You will probably come across the saying ‘location, location, location’ many times during your search for the right property, and in 99% of cases the advice is correct. To determine which location you should buy in, ask yourself what it is you want to achieve out of owning a property. If you plan to live in the property, write some lifestyle goals, such as local cafes or living close to family and friends. If the property is intended as an investment, proximity to public transport and desirable school zones are generally well received.
- How much should I spend?
Knowing where you want to buy, and what you can afford to buy may be two very different things. Setting a realistic budget that accommodates changes to your current lifestyle is important. Besides a possible increase financially from rent to a mortgage, making allowances for council rates, insurances and unexpected repairs is vital. Once you know how much you can realistically spend you will be better prepared to begin looking for a property in the right area for you.
- How long do I want to retain the property?
The length of time you intend to hold the property is also very important. If you are looking for a property to renovate and sell for a profit you may be looking at a different area than where you would want to settle down and raise a family. Knowing your long-term goals will help clarify what you should purchase right now.
- What do I do now?
Once you know that purchasing is the right decision for you, you’ve worked out roughly how much you can afford to spend and have an idea about where you would like to buy it is time to talk to a lender. Meeting with a bank representative or mortgage broker may seem daunting, but they are there to help you make the wisest purchase for your current situation.
Once you have your finances sorted, it’s time to start looking at properties to purchase. Finding ‘the one’ is equal parts exciting and equal parts terrifying. You may be concerned about putting in a private sale offer that isn’t too low that it will get rejected, or too high that you end up paying too much. Buying at auction is a different experience altogether and the bidding process can be daunting. Buyers advocates are a first home buyers best friend. They are skilled negotiators and auction bidders to make sure you achieve the lowest possible sale price for the best property for your situation.
Best of all, your buyer’s agent can help you during any stage of the process from setting your property goals, attending inspections, conducting appraisals, to organising pest and building assessments. With your own personal advocate, you can rest assured that the property you buy is the best property for you.
If you don’t want to go through the process alone, a buyer’s advocate from Wise Real Estate Advice may be the right person for you. Give the team a call on 1300 009 473 to organise an obligation-free consultation.