FIRST HOME OWNERS GUIDE
Buying your first home can be a daunting experience; after all, it’s a big commitment and involves a lot of money. To help you on your journey, we answer some of the most common questions asked by first home buyers.
HOW MUCH MONEY WILL I NEED?
At a minimum, you will need a 10% deposit plus enough funds to cover legal fees, a building inspection and stamp duty. If you buy a property with a deposit of less than 20% of the purchase price, most lenders will require you to take out mortgage insurance as well.
I LIKE THE SUBURB BUT I DON’T KNOW IT THAT WELL?
The best way to get know an area is to research it online, then go and see it in person. Start by searching for properties you like and then go to the open inspections. Talk to the agents about the area and on the way there and back; keep your eyes open for traffic issues, construction sites, transport, shopping centres, parks and schools. Once you have visited around a dozen properties, you’ll start to get a good feel for where the best locations are.
IS IT BETTER TO SAVE UP MORE OR BUY NOW?
If interest rates are low and the market is rising, the growth in property prices will usually outstrip your ability to save. That means it’s often better to purchase your home as soon as you can afford it.