Buying your first piece of Perth property or home of your own can be an overwhelming process. Here are SOMO’s top finance tips for first-home buyers.
1 – Make sure you’re eligible for a home loan
Before you dig too deeply into the process, check that you actually qualify for a home loan. Do some research to get an idea of how much money you can borrow as this will give you a realistic understanding of what (and where) you can actually buy.
2 – Sort out your debt
If you’re already in debt you might find it harder to get a home loan approved, or you may not be able to borrow quite as much. Focus on paying off any large debts you may have before you apply for a home loan, especially high-interest debts.
3 – Get a decent deposit together
The bigger your deposit the more you can borrow. And you can apply for loans with lower interest rates. While it’s possible to take out a loan with a 5 or 10 percent deposit, you may have to pay lenders mortgage insurance if you have less than a 20 percent deposit.
4 – Do the maths
Home buying incurs many surprise expenses. Budget for removalist costs, stamp duty, application and registration fees and pest inspection reports. You should also see if you’re eligible for a first home owner grant or stamp duty concessions. If you’re eligible, you’ll potentially save thousands of dollars.
5 – Position yourself for success
If you’ve fallen in love with a particular property, other buyers probably have too. Having all your paperwork and deposit together, plus pre-approval puts you in a much better position to snap up your dream home when you find it.
6 – Caveat emptor (home buyers, beware!)
Your first home is one of the largest purchases you’ll ever make, and ultimately you as the buyer are responsible for making sure you’re getting a quality property for the price you’re paying. Make sure you get a get building and pest inspection. Examine the quality of the property’s fittings and construction as best you can. And if there are obvious repairs needed (and you’re OK with that) make sure you get a quote for repairs and factor that into your budget.
7 – Get expert help from SOMO
No one knows the Perth property market like SOMO. Whatever your situation, wherever you’d like to live, or how much you’re prepared to spend, let our SOMO experts help you find a space of your own. Contact SOMO today on 9202 9292 or send us a message here.