Yes, it’s a daunting experience for many, but don’t let your fear of the unknown put you off the idea of buying your very first home as there are so many benefits to buying a property, especially detached housing, which has many notable advantages over purchasing an apartment.
If you’re considering purchasing your own home and you’ve been saving up for a deposit (try to save at least 20 percent), here are a few handy tips to help you navigate the process of buying a property.
Know What You Can Afford
Saving for a deposit not only has the benefit of increasing the sum of money that you can borrow, it also makes repaying the mortgage in a shorter period more feasible. Naturally, you’re still going to pay a lot of interest if you repay the home more quickly, but you’ll save a lot of money, and that makes saving for a deposit essential. Plus, if you save a deposit of at least 20 percent, you can avoid paying lender’s insurance.
Know Mortgages and the Application Process
As your parents will tell you, or anyone else who’s applied for a mortgage in order to snap up a great house and land package from Aveling Homes, you need to apply for the mortgage before you source the perfect property so that you can make an offer immediately instead of waiting around for approval.
However, before you apply for a mortgage you need to familiarise yourself with mortgages, understand what to look for in a good mortgage, and get to know the application process inside and out. The better prepared you are the better the decisions you make will be, so ask your parents and friends who have applied for mortgages to purchase detached housing about what you should expect and how to go about things. Don’t overlook the benefits of knowing exactly what you’re getting yourself into!
Research Your Property Options
Detached housing is your best option as far as purchasing property goes, unless you’re certain that inner-city apartment-style living is perfect for you and you’re willing to take your chances on the predicted oversupply of apartments that’s going to affect all Australian cities.
As you may have heard, it’s predicted that by 2018 there will be an oversupply of 100,000 apartments in Australia, so it’s quite a risk investing in an apartment when there are such great deals to be found on Perth house and land packages. With that in mind, the earlier you start looking at your property options the better, so research things such as:
- Location – Where are you looking at buying and what are the benefits to buying in that area?
- House type – A new house and land package is a much better investment than a secondhand house on land.
- Size – Consider not only the size of the home, but the size of the plot of land when buying property.
There’s a lot to consider as a first-time homebuyer, but don’t let yourself get overwhelmed, don’t rush, do your research and ask for advice – you’ll be fine!