The goal to own property is deeply rooted in our national psyche, yet your first home-ownership journey can feel like walking into a labyrinth of jargon, daunting decisions and financial challenges.
For first-time buyers, this is a perfectly natural response. Yet navigating this path will help secure your financial future and turn a dream into your reality.
The key to a successful first purchase is careful planning.
The mistake is to hold yourself hostage to the daily twists and turns of the real estate market and interest rate speculation, as this will result in decision paralysis.
You need to lay a solid financial foundation that will dictate the location and type of property you desire and can afford.
Below, our agents have outlined some of the critical steps in making your first purchase. We hope you find them useful.
- Cash Question: Take a realistic look at your financial situation. How much can you comfortably afford to spend on a home? Consider your income, expenses, existing debts and savings.
- Savings Strategy: Saving for a deposit is a significant challenge. Start by creating a detailed budget and identifying areas to cut back. Also, talk to lenders or a broker about whether you need a standard 20% deposit to get onto the property ladder. (Probably, you don’t).
- Credit Check: How’s your credit rating looking? If you’ve missed payments on a personal loan, you might want to use a credit agency to find out whether lenders will see you as a good or bad risk.
- Pre-Approval Power: Seek a pre-approved loan from a lender, or use a broker to source one for you. Once granted, you will know exactly what you can afford.
The second element of your strategy is to decide on the type of property and location within your budget. Here are some questions for you to consider:
- Your Lifestyle: Do you see yourself living in a bustling city centre or a peaceful suburb? Proximity to your work, public transport, amenities, and cafes and restaurants are important considerations.
- Property Type: Think about your current and future needs. Are you envisioning a city apartment, spacious family home in the suburbs or a modern townhouse?
- What’s Essential? Make a list of must-haves and nice-to-haves, such as the number of bedrooms, a garden or large balcony space. This list will make your property search highly efficient.
- Do Your Research: Explore online listings, attend open houses and talk to one of our agents to get a feel for the market and understand local price trends. Pay attention to recent sales data in your preferred areas.