buying tips | First Home Buyer Guide: Everything You Need to Know

Introduction

Embarking on the journey to homeownership is an exciting milestone, especially for first home buyers. In Canberra, where the real estate market can be competitive yet rewarding, having the right information and guidance is crucial. This comprehensive guide will walk you through everything you need to know as you take your first steps into the property market.

Understanding Your Budget

Before you start browsing for your dream home, it’s essential to get a realistic grasp of your financial situation. Here are some key factors to consider:

• Deposit: Most lenders require a deposit of at least 5-20% of the property’s purchase price. Saving up for a larger deposit can reduce your mortgage insurance costs.
• Stamp Duty: In the ACT, first home buyers may be eligible for exemptions or concessions on stamp duty. Consult the ACT Revenue Office for the latest regulations.
• Ongoing Costs: Remember to factor in additional expenses such as council rates, utilities, and maintenance costs.

Getting Pre-Approved for a Home Loan

Before you start house-hunting, obtaining pre-approval for a home loan is a significant step. This involves:

• Researching Lenders: Compare different lenders and their home loan products. Look for competitive interest rates and favourable terms.
• Submitting Documentation: Lenders will require proof of income, savings, and other financial information to assess your borrowing capacity.
• Understanding Loan Types: Familiarise yourself with different home loan types, such as fixed, variable, or split-rate loans, to find the best fit for your situation.

Choosing the Right Location

Location plays a crucial role in your home-buying decision. The ACT offers diverse neighbourhoods, each with unique characteristics. Consider these factors when choosing a location:

• Proximity to Work and Amenities: Determine how far you’re willing to commute and what amenities are important to you, such as schools, parks, and shopping centres.
• Future Development: Research any planned developments in the area that could affect property values or your quality of life.
• Community Feel: Visit different suburbs to get a feel for the community and whether it aligns with your lifestyle.

House Hunting Tips

With your budget and location in mind, it’s time to start looking for your new home. Here are some tips to streamline the house-hunting process:

• Utilise Online Resources: Websites like realestate.com.au or domain.com.au can provide valuable insights into current listings and market trends.
• Attend Open Homes: Open inspections allow you to get a feel for the property and neighbourhood. Take notes and pictures to help you remember each property.
• Work with a Real Estate Agent: An experienced agent can provide invaluable local knowledge and help negotiate on your behalf.

Making an Offer

Once you’ve found the right property, it’s time to make an offer. Keep these points in mind:

• Market Research: Look at comparable sales in the area to gauge a fair offer price.
• Conditions: Consider including conditions in your offer, such as subject to building and pest inspections, to protect yourself.
• Be Prepared to Negotiate: The seller might counter your offer. Stay flexible and be ready to negotiate to reach a mutually agreeable price.

Final Steps to Home Ownership

Once your offer is accepted, there are a few final steps to complete before you can officially call the house your home:

• Conduct Inspections: Arrange for building and pest inspections to ensure the property is in good condition.
• Secure Financing: Finalise your loan with your lender and ensure all documentation is in order.
• Settlement: On the settlement day, you’ll pay the remaining funds and receive the keys to your new home!

Conclusion

Becoming a first home buyer is a significant achievement, and understanding the process can make it much smoother. From budgeting to securing your loan and finding the perfect property, knowledge is key. If you’re ready to take the leap into homeownership, Jonny Warren Real Estate is here to assist you every step of the way. Let us help you find your dream home in Canberra today!