For First Home Buyers, Buying your First Home is going to be the most significant investment of your life that will either have you sitting pretty on the building ladder, or send your finances down the tubes—so there is no real pressure. Along with this, you will hear from every so-called expert – Some have not even brought a property yet.
Buying your very first house is a big deal, as it should be. But the chances are that you have little to no experience in real estate, so the margin for mistake is terrific. To err is human, but a wrong move in the property game can cost you very much.
Where to get Brisbane’s most exceptional First Home bargains.
My preferred Independent Finance broker told me ” First-time Home Buyers should be aware of the simple mistakes. These might impact their ability to buy. Always look at the true cost of Borrowing, or it may cost them extra over time.”
The best advice for first-home buyers is the panic and desperation of 2016 as well as 2017 has reduced. In 2019, brand-new housing loan products are available. Banks are lending again.
With products like 97% lend by major institutions, it’s now a whole lot simpler for first-home purchasers to obtain finance compared with the last couple of years. But the emphasis is still on the fact that you have to be able to pay it back.
Queensland offers stamp duty exceptions, which are assisting specific first-home customers in getting into the market in queensland. This stamp duty exception generally applies to first home buyers, buying a new or pre-loved home.
With the tables ultimately turning in favour of first-home purchasers, it is just logical the property market is set to see a lot of inexperienced purchasers that should be concentrating on research before househunting.
Below are some of the biggest newbie real estate mistakes.
It’s crucial to do your research– discover correctly how Brisbane Suburb prices vary, work out what gets you what in each suburb. The best suburb for you may not be the same suburb you currently live in or may not be your preferred suburb.
1. Not being First Home Buyer budget plan savvy.
Have a clear understanding of your budget. Write it down. By writing it down, you can be sure that your memory won’t fail you or bend to emotions. Get pre-approval from an independent Finance broker; it will set you up for your search.
Tip; don’t start looking online before you know just how much money you have to play with.
First-home buyers should have a clear concept of their budget before they go house searching.
You’ll need to recognise what a change in interest rates will mean for your repayments. A tip from experienced borrowers is; add 3% to the standard mortgage interest rate when you do your repayment calculations, it will make the loan feel more achievable and enable faster payments in the early days. Watch for traps with the honeymoon interest rates on offer.
2. First Home Buyers Not having that 20 per cent deposit
There are means to get into your first home without the typical 20 per cent down payment, but lenders need to protect themselves, this is in the form of Lenders Mortgage Insurance (aka LMI). LMI is an insurance plan shielding the lending institution (not the customer) from financial loss in the event you can not make your home mortgage repayments, LMI is extra, but it does mean that you can get started earlier. Don’t be put off by this, but recognise that it can exist. Good independent brokers have ways to get you saving and in a position to borrow earlier.
3. Not understanding the reality of interest rates
Comprehending interest rates and how they can change might not sound unusual, but some struggle with the concept. Prices may be at historic lows, yet what drops must increase– eventually. A first-time purchaser purchasing today will likely be in a mortgage for up to 30 years, so it’s worth explaining that rates of interest were higher than double their current status only ten years back.
4. Not having enough leftover
It’s not just about the acquisition price. Homebuyers need to think about the hefty costs of stamp duty, Building and pest inspection or strata record inspections, transfer fees, solicitor fees, relocating expenses, and new furnishings or garden plants.
Set an acquiring budget so you can tally up all the possibilities involved costs.
5. Home Buyers Not getting reports
A lot of first-home purchasers attempt to cut corners when it pertains to the handover inspection (new Builds), or building and pest inspections on existing builds or strata records for townhouses or units. A right Conveyancer will guide you here.
Building and also insect examinations or considering the strata report of an apartment building are essential steps. If you aren’t aware of a home’s problems, you could be out of pocket by thousands of dollars.”
6. Missing out on First Home Buyer Grants
The First Home Owners Grant differ at different times; there conditions and benefits change continually. Be aware of the current conditions and value are. But don’t base your decision on this grant. I have seen people base their purchase on getting this grant and having the purchase under a specific figure to get the full benefit.
But at the same time, they could have got a better house for $5,000 more in an area that was better suited for them and would grow in value faster. In some cases, a pre-loved (existing ) home closer in was cheaper than one a few suburbs away, after the First Home Buyer grants. They were too focused on getting the First Home Grant and not the best property for themselves.
7. Succumbing to the frills of New Build Homes
First-home customers need to keep in mind that their first home is now usually not there forever home. Building a new home with all the upgrades and options will not necessarily make it worth more when they sell in a few years. Trends and needs change as time goes on. Having the best and fanciest house will more often than not create a whole new range of issues and debt.
Buy to suit your budget and needs and see where it takes you. A speced up display home can often cost $100,000 to $200,000 higher than the standard build price.
8. Trusting the Wrong People or Websites
People will trust the wrong people or information. I once had a young couple argue with me about the sale property of a new build home. I had sold that home but as it was an open listing the other agent had reported a sale price to the website approx. $45,000 lower (not sure why unless they were trying to use the information to manipulate another seller).
I advised them the correct price and even offered to call the builder on the spot to confirm. They accepted the website price as accurate, trying to use it to bargain a bigger house on a larger block to the same price. In other cases people go to a builder or a local real estate agent, in general, they only have properties in a particular area (despite being part of a “network”), so to them the Best properties are what they will make the most money out off.
As an independent, we have access to more properties in more locations, which is why we generally start with finding out your budget, preferred neighbourhoods, timeframe and house requirements. This Service gives you a more comprehensive selection of properties. Sometimes your ideal house has not been built yet which means there is money to be made instantly as the values are continuing to rise. They are not making land anymore (unless you want to live on a coastal canal estate).
Yes, now is an excellent time to get started. Se how we can help you get started and for how much in a location that suits you