Buying your first home is a tough decision. There are a lot of different tricky bits and pieces to think about before you sign on the dotted line, and a bunch of little decisions to make before you come to the big one. Future Living Homes are here to help, and we’ve put together a list of key questions to think about before you make your purchase.
What do you want?
First up, are you aiming to buy your first home to live in, or as an investment property? Most first home buyers end up occupying their home initially, but some choose to purchase a property and rent it out to cover mortgage repayments while they live elsewhere. Decide what is right for you! Next up, are you hoping to buy or build your new home? Many first home buyers are choosing to build or take on a house and land package, particularly in Western Australia – as they can then take advantage of the first home owner’s grant and lower all-round fees. Once you have decided on what kind of home you would like, think about the area you might like to purchase or build on, and go from there.
What’s your budget?
Every individual’s budget is going to be different. Whether you are buying your first home solo, combining your finances with a partner, or already have a family, take stock of your financial situation. What does your savings account look like, and how is your credit rating? Do you have any major upcoming expenses (car, holiday) that might need to be taken into account? What would you be happy to spend on a home in the long run, and what can you afford in terms of repayments? Work out your budget and what you can afford to spend – and don’t cut corners! Make sure you are realistic about what you can put on the table, and what you can repay in the coming months and years.
Do you need time to save?
So, you’ve come up with a budget and you know what you want to ideally spend on a home – and how much you can realistically stretch your ideal budget. Now, you need to figure out if you have the money at hand right now, or if you need time to save. Even if you are planning on using the services of a home loan, you will need to put a deposit and certain other bits and pieces down up front. So, figure out what you will need all up and then decide if you need to step back and save a little more before you sign on any dotted lines. But, remember that some home builder companies are dedicated to assisting singles, couples and families no matter what their financial situation!
What are the bonuses of being a first home buyer?
There are a few incredible bonuses on offer from government bodies for first home buyers, depending on the state you live in and the type of home you are purchasing. For those in Western Australia, there isn’t a grant available for those purchasing an established home – but there is for those buying or building a brand new home. For those building their own home, the grant is up to $10,000, plus potential stamp duty concessions. That is a huge amount to kick off your home loan with, or to use as a deposit contribution. With certain companies like Future Home Living, first home buyers can also enjoy an incredibly low deposit rate (starting at 1%!).