A Guide For First Home Buyers

Getting a foot in the property market is always daunting, stressful and confusing. What area should you buy/invest in, what property type can you afford, are you getting value for your money? Despite the changes to our economy due to Coronavirus and lockdowns, it is still possible to purchase your first home, even if your initial plans are off course.

Home Loan Pre Approval

Many Australians have sadly lost their job, however, as you will know, JobSeeker is helping to keep people afloat and is also allowing people to still apply for a home loan. Whether or not you’re on JobSeeker, getting home loan approval is an important first step. This allows you to understand exactly what price parameters you should be looking at and informs your property search. Interest rates for home loans are also at an all-time low making now as good a time as ever to get serious about purchasing your first property.

Value Vs Bargains

Just because you find a property at a great price doesn’t mean you should jump at the opportunity. If the property needs some serious work, consider how much more you will need to spend to get the work done, will this blow your budget in the long run?

On the flip side, just because you might be able to afford that extra bedroom in the current market, don’t let go of other property features that are more important to you. For example, if you find a fantastic 3-bedroom apartment with a car space (no lock-up garage or storage cage) and sacrifice a garage for this bedroom, will you still be happy. Or is the extra storage space and garage a wiser choice than that third bedroom.

FOMO (fear of missing out) is very real, so don’t feel rushed or pressured into purchasing a property that isn’t right for you. Your home is your biggest asset so focus on value, not a bargain at the time of purchase.

Love Your Location

Choosing a suburb/area to live in is mostly a personal choice, but there are things you need to consider before making the move.

Proximity to your workplace, lifestyle amenities and transport are all important location factors on a property hunter’s list. You can always update a less than impressive home in a great location but you can’t fix a location. Location factors to consider include proximity to train lines (you want to be close but not directly on them), flight paths, main roads etc. You may not notice the noise pollution during your inspection but if the property is on a busy main road or situated right on a train line, you can bet that it will be a noisy area.

What Does Your Future Hold?

Do you plan on starting a family in your first home, or even getting a fur-child of sorts? This will certainly have an impact on your lifestyle and the type of property that will best suit your lifestyle. First home buyers can capitalise on homes that have a good structure and that can be further improved/extended down the track to evolve with your lifestyle. A small yard is ideal for children and pets, a second bathroom is handy and can help you prevent growing out of your first home too quickly.