Testing the temperature of the real estate pond for the first time is nothing if not intimidating. If you’re taking the leap and looking to become a first-time home buyer, here are six tips to help you along the way.
1. Know Your Limits
Your budget and financial position will be one of the most important factors of buying any property, so it’s important to talk to financial institutions well before finding a property. Shop around for a good deal when it comes to interest rates and the fixtures that you might require, such as redraw facilities or offset accounts. Your chosen lender can then help you determine reasonable minimum and maximum figures for your property purchase.
2. Understand Your Objectives
Your property might be going to serve a specific purpose to suit your financial plan, so it’s critical to clearly define this first. Are you looking for an investment property to get you ahead, a home to move into for the long haul, or a small house with capital growth potential that will get you a firm footing on the first rung of the real estate ladder? Knowing exactly what you’re looking for will help you shortlist your options more quickly.
3. Ask The Experts
As with any field in life, it pays to have some good knowledge and expertise on hand. Not only should you do your own research; it’s also important to talk to experts in the field.
If you are a first-time home buyer and don’t have time for either, I think it’s imperative that you contact a local buyers agent, for example, if looking for a property in Brisbane http://www.templetonproperty.com.au. Templeton property will typically know the ins and outs of their local market and what a suburb is likely to do. You can click http://www.templetonproperty.com.au/our-services/buyers-agent-advocacy-service/ to visit their website and explore the range of services such a company can provide you with.
4. Adapt To What’s Available
Once you have defined the type of property you seek and the suburbs that interest you, it’s time to start the hunt for the right house. While you may now have a firm idea of exactly what you are looking for, be prepared to make some compromises along the way. If you really want a worker’s cottage near the city, chances are you have to compromise on a pool for your first home.
This also means you need to see potential in properties by looking for bad houses on good streets, properties that need a little TLC, or areas that are on the cusp of booming. Properties like this have the potential to reap good capital gain, making your first home a solid step up to your ultimate dream house.
5. Do Your Inspections
Amidst all the excitement of finding a home, it is imperative to do your due diligence. That means pest and building inspections are critical to flag any potential or existing structural problems.
6. Negotiate
There’s a reason it’s called ‘asking price’ – that’s what the vendor wants to sell their property for, but it may not be what they actually get. Don’t be afraid to put in lower offers on a property. If you cannot get it for what you believe it’s worth, simply walk away, there will always be another.
Armed with a financial plan, knowledge and foresight, buying your first home is an exciting time in life and may it be the first of many purchases.
This is a sponsored post, however, Belinda and I will never share with you anything that we do not believe in, or would not, or have not used ourselves. Brett and I bought 2 houses in New Zealand via a buyers agent because we had not researched the area ourselves and didn’t have the time to. Those homes have done very well for us, doubling in value over 10 years.
Belinda Smith
Anything to add, please do so in the comments below.