Buying your first home is probably the biggest investment decision you will ever make after your kids’ university and your car. Buying your first home is like a rite of passage that moves you straight away to adulthood and responsibility. It is a time of nervousness and the unknown, but also a time to feel pride in what you have achieved. Believe it or not, not everyone gets to buy his or her own home and many have to rent, due to the financial commitments required in securing your first mortgage.
It is not straight away buying yourself a home as there is a minefield of things to go through, before you see a glimmer of light at the end. Finding a home in the right location is difficult. It has to be near schools and shops and more importantly, not too far away from your work. It needs to be affordable as well, but at the same time, you don’t want to buy some shack that is not suitable to live in. Even if you do find what you are looking for and at the right price, you still need to go seek expert advise and assistance like from a mortgage broker in Sydney or in your local area to set everything up for you. Here are some good hacks for getting your first home and making sure you don’t pay the earth for it.
1. Start Saving Now:
A mortgage is a big help but it will not usually cover everything. Everyone is expected to put up an initial deposit called a down payment. You need to start saving now, if you haven’t already. If you do not have the cash yet, then you should not even be looking for a house at this time. Some lenders have been known to offer you a mortgage with a small down payment or sometimes no down payment at all. These are to be avoided at all costs, as they involve high interest rates and additional insurance, to cover you in the event of default.
2. Location, Location:
This is the single most important variable that decides the price that you are going to pay for your home. It’s all about demand and supply, and the more people want to live in a certain area, the higher the prices will rise. On an occasion like this, it is known as a sellers’ market, which is not favorable for buyers at all. If you choose a bad location, then your investment will quickly lose its value.
3. The Internet Is Your Friend:
Thankfully, you can now look for your first home via online methods. Certain applications allow you to set some criteria like size, price, location, number of bedrooms, garage and so on, which helps you greatly. Historically, many trips were required to the estate agent and all you had were brochures and newspapers to look at.
Buying your first home should and could be a positive experience. The above hacks should go some way to assisting you with that. Good luck.