Whether you’re ready to move out of your parents’ home, buy an apartment with your partner, or thinking about investing for the future, purchasing your first property in Perth is a big, exciting step. There are lots of stages that take you from where you are to where you want to be – here are some of the common ones:
- Determine your budget. Knowing how much money you can borrow will give you a realistic understanding of what (and where in Perth) you can actually buy. Put simply: the bigger the deposit the more you can borrow. Just remember that it’s better to overestimate than underestimate your expenses when planning your budget.
- Get your debt under control. Before you can realistically work out what you can buy, you need to understand what you currently owe. Consolidating debts, paying down credit cards, working with a budget, growing your income and paying bills on time are some of the ways to sort out your debt.
- Think about your finance options. If this is going to be your forever home, a 30-year, fixed-rate mortgage might tick all the boxes. However, if you’re looking at a starter property, an adjustable rate mortgage may be a better option.
- Where would you like to live? In the suburb you currently call home, or would you like a change of scenery? Do you need to be close to amenities like schools and reliable transport, or is staying close to family more important? Try to keep an open mind as your dream street or suburb may be too expensive, which may mean looking at smaller properties in adjacent suburbs.
- Do your homework. You can never do enough research when it comes to buying your first home or investment property. Like looking at suburbs in and around Perth’s CBD that have performed well over an extended period of time, and taking the time to read up about them and what they have to offer.
- Create a checklist of your needs and wants. Include the space within the four walls – number of rooms, layout, fixtures – and also outside it. Not just entertaining areas and perhaps a lock-up garage but also proximity to shops and community groups.
- Get a property inspection. This is a worthwhile investment for a few reasons. Aside from their ability to bring potential issues to light, building and pest inspections can potentially be used to negotiate on the purchase price.
- Always check the small print of contracts. And if you find the information confusing or overwhelming, ask for help!
- Enjoy the process! While it can feel like a daunting task, the process of buying your first home or investment property is an exciting time – so enjoy every moment of it!
Let’s face it: sometimes we need to make a few compromises to get our foot on the property ladder. Knowing what you really need can help narrow your home options, and also make decisions easier when it comes to making an offer on a space to call your own.