While there was once a time when Australian properties were flying off the shelves, recent evidence demonstrates how the property market is slowing down. This means now's the chance for first-time buyers to dip their toes in the water. If you're new to the property world, there are a few ways to maximise your first experience:
Create a budget from the moment you consider buying
From the deposit through to your monthly costs, the financial implications of buying a property are far-reaching. Before you begin, you need to consider:
You'll need between 5% and 20% of the property's price to get a mortgage, so if you're not saving already, start now.
Discuss the possibility of guarantors
Whether it's a poor credit history or a low deposit driving up those inflation rates, you may find your mortgage options are limited. This is where kind relatives come in; try talking to your parents about acting as a guarantor. Doing this in advance of choosing a property and applying for a mortgage avoids disappointment when the real estate world isn't working in your favour.
Invest time in researching the market
In the midst of your first buying experience excitement, it's tempting to opt for the first property you fall in love with. Properties don't disappear overnight, and if yours does, there's always another one out there. Consider looking at multiple houses before you make any major decisions. To make the process easier, create a list of must-haves for your new home and ensure the ones you see tick all the boxes.
Consider government schemes
Depending on where you live, real estate is often expensive. This is where government schemes come in. One option is shared equity, which allows first-time buyers to get help from the government with their deposit. Another involves grabbing a grant to pay for the costs that come with being a first-time buyer or stamp duty concessions. Do a little background research and you may unearth a range of ways to make the property buying process cheaper and easier.
Ultimately, all first-time buyers must accept that the world of real estate is full of surprises, which means plenty of advance planning and setting realistic expectations. With a little research and a lot of attention to detail on the financial front, you can become a happy homeowner with their dream property.
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