Buying your first house can be extremely stressful. It is probably the biggest financial commitment you have ever made and will play a big role in determining your quality of life over the coming years. It could be the best decision you ever make, or one of the worst. To avoid a horror story, it is really important to do your homework and make sure everything is in order before you finally commit to your first house. In this article we’ll give you a head start with that homework, compiling a list of tips and suggestions to get you on the right path to owning your first house.
Don’t Wait Forever!
It’s vitally important that you don’t commit to buying a house before you are ready. You might get stuck with a mortgage to pay off that could last the rest of your adult life, leaving you no time to actually enjoy your investment. At odds with this potential downfall however, house prices in Sydney and all over Australia have been generally increasing at rates that exceed the rate of inflation and wage growth over the last few years. If this trend continues, the longer you wait the more expensive it is going to be to own a home. It is a high-stakes market and it is worth seeking advice from independent property market analysts to know where the current situation is heading.
Make Sure you are Eligible for a Home Loan
Unless you’ve suddenly come into a large enough sum of money to buy a house outright, you are going to need a home loan. You are not always going to get the best deal from a specialist mortgage broker and it is well worth your time and effort to talk to or visit a series of credit unions and banks. It is worth getting multiple appraisals of your situation and having the quotes evaluated by a trusted independent accountant. It might seem like a lot of effort, and it might cost a little bit of money upfront, but it may save you tens of thousands of dollars in the long run.
Proper financial advice will also be able to assess whether you are eligible for a first home buyer’s grant.
Beware the Hidden Cost of Old Houses
Assuming you are eligible for a home-loan and are ready to enter the market, there are some caveats to be aware of when purchasing an old or existing house. While it might be common decency for a real estate agent to tell you about every shortcoming of a property, they may not be as forthcoming as you would like. What’s more, they may not be aware of faults. You don’t want to buy a house only to find out three months down the line that the entire foundations are infested with termites or the roof needs replacing. An old house might look cheap on the surface, but the added price of necessary repairs to get it up to scratch may be too costly. It should be possible to negotiate electrical, structural and pest inspections with the real estate agent prior to purchase.
Alternatively, to avoid any of these potential problems, consider buying a new house from a trusted builder.
Talk to New Living Homes for House and Land Packages
New Living Homes are one of Sydney’s leading producers of new houses. We can build one of our predesigned homes on an existing block, customise it to your specifications or sell a complete house and land package. Call us today to talk about any of these options obligation free on 1300 366 766 or contact us online.