Now may prove a good time for renters thinking about buying their first home – particularly for those approaching the end of their lease.
The current market means contributing to your own home equity, rather than paying rising rents and helping pay off someone else’s mortgage, can be a good strategy.
While first-home buyers often feel like they are on a steep learning curve, the work will all seem worthwhile once you are handed the keys to a place which is truly yours.
To prepare for the journey, these top tips will help ensure you know what to expect.
Be prepared
Appliances breakdown, gutters rust, paint flakes, lawn mowers refuse to start: these are some of the “pleasures” of homeownership. All properties require maintenance, so put some time and budget aside.
Interest rates
Mortgage costs in Australia have been so low for so long (pretty much since the GFC of 2008), that we’ve taken super-low interest rates for granted. Be aware your lender will have factored in your ability to afford a 3% rise when approving your loan.
Costs change
Insurance, taxes and council rates are not immune from inflation. There’s no escaping this fact of life. Make sure your budget is always ready for these.
Zoning and building
Change is our only constant, as they say. So, neighbours may want to build a bigger home next to yours; or council may rezone the area to allow higher apartments to be built. Before making any purchase, do your council searches to see if there are any planned neighbourhood changes.
Play nicely
If you’re in a house, your relationship with neighbours can affect your enjoyment of your home. So, even in a dispute, keep your relationships on an even keel where possible.
DIY school
The longer you live in your property, the more likely you are to expand your DIY knowledge. That’s good and bad. Remember that sometimes professional workmanship can cost you less in the long run, especially when it’s time to sell.