With the property market showing all the signs of a recovery later this year, first-home buyers may want to start formulating purchase plans for the coming months.
Diligent planning and research around location, property styles, size and finance will accelerate the buying process and limit the risk of mistakes.
Key to a successful strategy is building a good team around you as you enter the market.
You need total confidence in your lawyer, mortgage broker or lending officer and, of course, the agent who will help you find your ideal property and negotiate the best price.
The great news for first-time buyers is that many industry experts, including analysts from Goldman Sachs, are predicting four interest rate cuts this year.
There’ll also be more homes on the market to choose from plus expectations that prices will remain stable.
That all adds up to an improved buying environment for 2024.
Check out these quick tips to help you with buying decisions.
Prioritize location
Many buyers worry about the timing of their purchase and whether mortgage costs will rise. This is something you cannot control. Instead of worrying, focus your energy on the best locations and styles for your first home.
Nervous buyer
Being nervous about spending so much money is understandable. To help calm the nerves or allay your fears, consider why you want to own a home. They’ll all be good reasons, and that should reassure you.
Big barrier
You’ve no doubt heard that you need a 20% deposit to buy a home, but that may not be true. Ask at least three lenders for the best deal they’ve got to win your business. However, if you do have 20%, then you shouldn’t need to buy mortgage insurance.
Mortgage fears
A hike in interest rates is a big deal when it reduces the pre-approved loan the bank promised. But, once you have the mortgage, small rate increases are usually affordable. There has not been an unusually high number of mortgage defaults since rates began rising 18 months ago.
Keep focused
We all want to fall in love with a property. But sometimes, emotions get the better of us. You still need to check for structural problems, mold issues and other challenges a home can face if poorly maintained. Don’t fall in love too quickly!
Don’t lowball
Keep your offers real so they are consistent with market expectations. Lowball offers are not a smart play and will often put you at the back of the line with the owner and their agent.
NOTE: The information in this article is general in nature and provided as a market overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.