We know that when it comes to making that first home purchase, every journey is certainly unique. But there’s some do’s and don’ts along the way that inarguably make for a smoother ride.
DOs
1. Research the market: Study the property market, including historical trends, recent sales, and forecasts. Attend open houses and speak with local real estate agents to gain insights into the market.
2. Pre-approval: Before you start house hunting, secure pre-approval for a home loan to understand your borrowing capacity and demonstrate to sellers that you are a serious buyer.
3. First Home Owner Grant and concessions: Familiarize yourself with government incentives available to first home buyers, such as the First Home Owner Grant (FHOG) and stamp duty concessions.
4. Create a budget: Determine your budget, considering additional costs such as stamp duty, conveyancing fees, home and contents insurance, and moving expenses.
5. Engage a conveyancer or solicitor: Engage a professional to help you navigate the legal process of buying property, including reviewing contracts and providing advice on your rights and obligations.
6. Strata, building and pest inspections: Organize thorough strata, building and pest inspections to identify any potential issues with the property before making an offer or bidding at auction.
7. Understand auction rules: If you are planning to buy at auction, familiarise yourself with the auction process, terms and conditions, and any necessary paperwork to avoid costly mistakes.
8. Seek professional advice: Speak with financial planners, mortgage brokers, and real estate agents to gain a comprehensive understanding of your options and responsibilities as a first home buyer.
DON'Ts
1. Overstretch your finances: Avoid borrowing more than you can comfortably repay, taking into account interest rate fluctuations, job changes, and unexpected expenses.
2. Underestimate additional costs: Be aware of all the costs involved in purchasing a property, including stamp duty, legal fees, and moving expenses, and ensure these are factored into your budget.
3. Skip due diligence: Thoroughly research the property, its location, and any future developments planned for the area to avoid potential issues with resale value or unexpected costs.
4. Fall in love with a property too soon: Remain objective and avoid becoming emotionally attached to a property before conducting thorough research and inspections.
5. Overlook the importance of location: Prioritize proximity to essential amenities, such as schools, public transport, and shops, as well as potential for capital growth.
6. Rely solely on friends and family for advice: While their opinions can be helpful, consult with professionals who are familiar with the property market in NSW to ensure you make informed decisions.
7. Rush the decision: Take your time to consider your options, and don't feel pressured to buy if you are not confident in your decision or the property's potential value.
By following these do's and don'ts, you can navigate the property market with confidence and achieve your dream of owning a home.
