5 must read tips for first home buyers

Before you start attending open houses, read these tips to ensure you not only choose the right property for you, but go through the home buying process as smoothly as possible. 

As we enter another property season, you may be considering whether now is the time to take the leap and purchase your first home. 

With property prices stabilising over recent years, interest rates at all-time lows and grants available to help you get a foot in the door, there is plenty of incentive to buy as a first home buyer. 

We’ve created some tips to help you navigate the buying process with ease, and get your hands on your keys to your very own home.

1. Only borrow what you can comfortably afford

A mortgage is a big commitment – typically lasting from 25 to 30 years. That’s why it’s important to ensure that the ongoing repayments are the right amount for your situation. Start by using an online home loan repayments calculator to work out how much your ongoing repayments might be. 

It’s also a good idea to road test that amount for 3 months, to see if you can manage those ongoing repayments coming out of your account each month. 

2. Check if you’re eligible for any grants in your state

As a first home buyer you may be eligible for a First Home Owner Grant (FHOG). Depending on the state or territory you live in this can be between $10,000 and $15,000 and generally has requirements, such as the property must be either new or substantially renovated. Visit firsthome.gov.au to find out the specific grant available in your area and the conditions that apply.  

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3. Conduct due diligence on the property

You’ve probably heard the saying “Buy with your head, not your heart” and that’s for a good reason. While a property at first glance may appear like everything you’re after, looking beyond the surface may show a different picture. 

If you’re buying a house always pay for building and pest inspection, as this will reveal if there are any structural issues or design flaws that may only be visible to building experts. For the purchase of an apartment, organise a strata inspection report which will reveal whether the building has a yearly pest inspection or whether there are any building problems. 

4. Try your hand at haggling 

As a first home buyer, you may feel a little intimidated when it comes to negotiating, but remember every little bit counts. By cutting even $20,000 off a property price, it could save you considerably over a life of a home loan. 

To get an idea of what you should be paying in the area you’re buying, have a look at the sold prices listed on websites, such as Domain and realestate.com.au. If you’re finding the seller is pressuring you to make a “deal” quickly, it’s better to walk away and only agree to a price that you feel comfortable with. Remember there will always be other properties in the market. 

5. Call on the experts

You don’t have to go through the home buying process yourself. Having professionals on your side will help you buy with confidence. Ask friends and relatives for recommendations when it comes to your conveyancer, building inspector and lender. These experts will be able to help guide you through the stages of buying your first home. 

Once you find a property that ticks the boxes for you, your conveyancer will look over the contract and if your offer is accepted by the seller, your lender will organise the valuation of the property, the home loan documents and settlement.