With many incentives enticing first-home buyers into the market, it’s little surprise that their enthusiasm for ownership is helping to fortify and grow the entire market even if high prices are making it an expensive proposition.
State and federal governments are offering a mix of saving schemes, grants and discounts on stamp duty to keep the sector bubbling – and it’s working. First-time buyers are optimistic about the future and displaying energy for property ownership.
Here are five issues to consider before you make the biggest and best purchase of your life.
Motivation
Have clarity on why you want to purchase a property. Think about your personal wealth goals and how these should be achieved while maintaining a satisfactory lifestyle.
The budget
Organise a pre-approved loan through a mortgage broker or lender to set your spending limit. You might be able to discuss your goals with parents, mentors or your accountant and get some additional insights and assistance. A parental loan guarantee is popular for singles buying on their own.
Target locations
Research the areas where you’d like to purchase. Ask yourself whether these locations suit your lifestyle. If you buy in suburbia, you may grow tired of catching trains and cabs to entertainment venues.
Reality check
Break down your needs versus your desires. This way, you’ll be able to identify affordable homes that meet your most essential criteria quickly. Ruling out potential homes because they’re not perfect will lead to a long and fruitless search.
Think ahead
If you’re cruising the market for entry-level, one-bedroom units, consider when you’ll need to upgrade. Be aware that lending restrictions often exist for units smaller than 50 square meters. This is especially relevant for young couples planning a family. It may be better to buy bigger but compromise on location.