Tips for the First-Time Homeowner
Category Blog
One of the most exciting decisions you can make is buying your own home. Whether you are fresh from living at home with your parents, a successful careerist with a fistful of dollars, or a young couple looking to settle their new life together, buying your first home is a significant milestone.
However, buying a home remains a major purchase - probably the biggest one you will make in your life - and so you need to take care and work step by step through what is undoubtedly a complicated process.
Financial preparedness
- Counting the pennies
Before diving into the home-buying process, assessing your overall financial health is a good idea. Calculate your net worth by subtracting your liabilities from your assets. This will give you a clear picture of your financial standing.
- Setting up a budget
Buying a home involves various upfront costs beyond the down payment. These include lawyer's fees, home inspection fees if you chose to go that route, and moving expenses. Make sure you have sufficient savings to cover these costs.
- Attaining bond pre-approval
Getting pre-approved for a bond gives you a clear idea of how much you can afford and shows sellers you are a serious buyer. This process usually involves a home loan service provider reviewing your financial information and credit history to determine the amount you can apply for.
Research and planning
- Figure out your priorities
List your needs and what you would like in your home. Consider factors such as location, size, number of bedrooms and bathrooms, yard space, and proximity to work, schools, and amenities. This will help narrow down your search and focus on properties that meet your criteria.
- Get to grips with the neighbourhood
Researching potential neighbourhoods is more important than you think. Consider factors such as safety, school quality, property taxes, and community amenities. If you can, it's a good idea to visit your area of interest at different times of the day to get a sense of the environment and lifestyle.
- Assess changeable market conditions
Familiarise yourself with the local real estate market conditions. Understand whether it's a buyer's or seller's market, as this can impact your negotiating power and the competitiveness of your offer.
Properly understand the purchasing process
- Hire a professional estate agent
A knowledgeable agent can be an invaluable resource. They can help you to more agilely navigate the complexities of the home-buying process, provide market insights, and negotiate on your behalf. Choose an agent with a good reputation and experience in your desired area.
- Get to know your chosen area
Attend open houses and schedule home tours to get a feel for different properties. Take notes and photos to remember the features and layouts of each home. Don't be afraid to ask questions about the property's history, condition, and any potential issues.
- Arrange for a home inspection on your chosen house
While it is the seller's responsibility to arrange Compliance Certificates, you may also schedule a professional home inspection if you so wish. An inspection will identify any structural or mechanical issues that need to be addressed, so might be worthwhile to get this ahead of things. You can then use the report to negotiate repairs or a price reduction with the seller.
Take the big step of making an offer
- Make a competitive offer
Here you will need to work closely with your estate agent to make a competitive offer based on the home's market value and condition. Be prepared for counteroffers and negotiations.
- Make sure you can be properly financed
After your offer is accepted, work with your lawyer to finalise the purchase, and with your home loan company to finalise your bond. Submit all required documentation promptly and respond quickly to any further requests for information.
- Make sure you understand the terms of your bond
Before closing, review your bond application and acceptance document. This document outlines the final terms of your bond, including the amount, interest rate, and closing costs.
Time to kick back and enjoy your new home
Moving into your new home is always a good feeling - but as a homeowner, you now have a host of responsibilities to consider:
- Regular maintenance is essential to preserve the value of your home and prevent costly repairs.
- Homeownership comes with ongoing expenses beyond the bond repayments. You need to budget for property taxes, homeowners insurance, utilities, and maintenance.
- Take the time to get to know your new neighborhood. Building relationships within your community can enhance your experience of living in the area.
Author: Leapfrog Property Group
