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YOU’LL NEED A WEDGE TO HANG THAT DOOR
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YOU’LL NEED A WEDGE TO HANG THAT DOOR

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The Aussie city with the cheapest house price has been revealed

The Aussie city with the cheapest house price has been revealed

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4 signs that a property isn’t worth buying

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7 ways to boost your borrowing capacity and land your dream home

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Kerching! How to add value to your home before selling

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This is how much you need to earn to buy a house in Australia right now

This is how much you need to earn to buy a house in Australia right now

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Two-thirds of house hunters are put off by this one feature

3 ways to pay off your home loan faster

3 ways to pay off your home loan faster

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The upfront costs that hit the hardest when buying a house

The upfront costs that hit the hardest when buying a house

How to negotiate with a real estate agent

How to negotiate with a real estate agent

What you need to know before bidding at auction

What you need to know before bidding at auction

The pros and cons of renting versus buying

The pros and cons of renting versus buying

Why waiting for cheaper house prices is a bad idea

Why waiting for cheaper house prices is a bad idea

The one question that could save you money on your mortgage

The one question that could save you money on your mortgage

How to live 'off-the-grid' in Australia

How to live 'off-the-grid' in Australia

In Partnership With Better Homes and Gardens Real Estate
  1. Home
  2. Property

5 need-to-know tips for first homebuyers

Here’s how to get your foot in the door - by Kathryn Madden
  • 01 Nov 2019
5 need-to-know tips for first homebuyers

For first time buyers, the prospect of entering the property market can be a daunting one. But with interest rates at an all-time low, plus a new government-funded first home loan scheme due to launch in January 2020, opportunities are on the rise. Follow these steps for your best chance of success – that is, popping the champagne post-auction.

Get serious about saving

Following Australia’s Royal Commission into financial services, “responsible lending” is a new buzz phrase and dictates that a bank loan must be suitable (i.e. repayable) for a borrower. The upshot? While you might find an institution that will loan up to 95 per cent of a home’s purchase price, it’s much safer to come armed with a 20 per cent deposit. With that in mind, you’ll want to draw up a comprehensive budget to reach your fiscal goals. There are numerous useful apps for money monitoring, while online loan calculators will also come in handy. Don’t forget to take into account the extra costs of home ownership – stamp duty, loan application fees and mortgage insurance, to name a few – plus any government grants you might be eligible for.

Get serious about saving when thinking about buying your first home
Getty

Clean up your finances

“Many first-time homebuyers have been in the rental market and don’t realise their rental history can support their ability to service a loan,” says Michelle Delaney, CEO of Better Homes and Gardens Real Estate in Australia. “Ensuring that your rental payment record is clean and consistent is key; always ask for a rental payment ledger from your current real estate agency.” While you’re at it, get your credit history in order. Lenders usually want to see three-to-six months’ worth of bank statements before they’ll do a deal.

Build your dream team

Purchasing a pile of bricks needn’t be a lonely pursuit – in fact, a skilled support network can make a world of difference. “Surrounding yourself with the right people will help you make the right choice,” affirms Delaney, who suggests enlisting the expertise of a qualified financial advisor and a broker you can trust. “Also choose a real estate agent who’s accomplished in your area,” she adds. “The right loan and property will afford you the lifestyle you seek.”

Choose a real estate agent who is accomplished in your area
Getty

Don’t get too emotional

It’s best to approach real estate with a healthy balance of heart and head. “Emotions when buying property can blur your perception,” explains Delaney. “Don't get caught up in what you want versus what you can really afford. This is your first home so keep things in perspective.” And be realistic: you’ll probably endure a few heartbreaks before you find The One, so try not to start mentally decorating that Art Deco apartment or planning Christmas in the seaside semi before it’s actually yours.

Forget about timing

“There is never a right time in the world of real estate,” declares Delaney. “I’ve seen people wait for the market to drop – and they’re still waiting!” The time to buy is when it’s right for you – financially, mentally and emotionally. Also keep in mind that there are ways to break into the market before you can afford your dream home; “rentvesting” means buying an investment property then renting where you want to live. It offers the benefits of home ownership (and a tax deduction!), without having to sacrifice your lifestyle.

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YOU’LL NEED A WEDGE TO HANG THAT DOOR
Watch 6:32

YOU’LL NEED A WEDGE TO HANG THAT DOOR

{headline}

{headline}

The Aussie city with the cheapest house price has been revealed

The Aussie city with the cheapest house price has been revealed

4 signs that a property isn’t worth buying

4 signs that a property isn’t worth buying

7 ways to boost your borrowing capacity and land your dream home

7 ways to boost your borrowing capacity and land your dream home

Kerching! How to add value to your home before selling

Kerching! How to add value to your home before selling

{headline}

{headline}

This is how much you need to earn to buy a house in Australia right now

This is how much you need to earn to buy a house in Australia right now

Two-thirds of house hunters are put off by this one feature

Two-thirds of house hunters are put off by this one feature

3 ways to pay off your home loan faster

3 ways to pay off your home loan faster

{headline}

{headline}

The upfront costs that hit the hardest when buying a house

The upfront costs that hit the hardest when buying a house

How to negotiate with a real estate agent

How to negotiate with a real estate agent

What you need to know before bidding at auction

What you need to know before bidding at auction

The pros and cons of renting versus buying

The pros and cons of renting versus buying

Why waiting for cheaper house prices is a bad idea

Why waiting for cheaper house prices is a bad idea

The one question that could save you money on your mortgage

The one question that could save you money on your mortgage

How to live 'off-the-grid' in Australia

How to live 'off-the-grid' in Australia

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