Handy Tips For First Home Buyers
Handy Tips For First Home Buyers: November 11, 2015
Entering the property market for the first time can be a somewhat daunting experience, although with some planning and preparation the process doesn’t have to be a stressful one. Cape Finance are always on hand to walk you through the transaction to fulfil the great Australian dream.
Here are a few handy tips to guide you through the process:
1 Understand all the costs. All too often buyers forget to budget for the extra costs involved such as inspection reports, stamp duty, insurance, valuations, settlement agent and hiring a removalist.
2 Use the first home owners grant and concessions. While the $3k FHOG has been scrapped, there is still $10,000 available for new homes. Concession rates have also changed last year with stamp duty concession at a nil rate up to $430,000 and a concessional rate up to a threshold of $530,000.
3 Do your research. With plenty of lenders and hundreds of loan options available, it’s worth investigating the market to make sure you’re getting a great deal. Cape Finance specialise in understanding the lenders and their products to find the most suitable loan for your needs.
4 Use your head. This may sound like a simple one, though so many people fall in love with a property and will stop at nothing to make it their own. This may lead
Get pre approved. It may be the difference between a real estate agent recommending your offer over the next guy. We can quickly prepare you an approval in principal to take shopping, this will also keep your budget in check so that your not signing a contract for something that you cannot afford.
5 Be careful not to overextend yourself. Before you go shopping it is essential to speak with your broker and work out a budget. Having enough cash flow to maintain your lifestyle and savings is important, not just for the unforeseen circumstances, you also need to be able to afford the repayments if interest rates go up.
6 Get checked. Having a pre purchase building and termite inspection is an essential step before settlement. In fact you should always have the result of the inspection as a condition of the sales contract, leave it to a professional to give it a thorough check just in case you miss something.
7 Save money for furniture. Sure it may seem appropriate to sleep on card board boxes just to get that dream home, but maybe leave a little left over for some furniture. Let your family and friends know that your entering the market and who knows what hand-me-downs might come your way.