Top Five Tips for New Homeowners

September 30, 2015 - Posted in Budgeting, Financial Planning, First Home Buyers

Are you looking to buy your first home? If so, you may be filled with excitement and anxiety. Don’t worry, you’re not alone. Like you, many other prospective home owners find the process of buying a home quite daunting and overwhelming.

Most new home buyers are unsure of what to do, how to prepare and who best to speak to in order to obtain the right information. Because this is such a highly involved project, the best thing you can do to get the ball rolling is to make sure you’re fully informed.

At Multi-Choice Home Loans, we have put together a list of some of the most important things to consider when you start off along the journey to owning your first home.

  1. It’s a Lifestyle Choice

Do you enjoy the buzz of a busy metropolis at your doorstep, or are you looking for a home with a white-picket fence and garden for your children to play? What type of services and amenities are most important to you? It’s important to be clear on what you want, because once you have your new home you want to be able to enjoy everything that’s around. Look beyond the here and now into the future – where will you want to be?

  1. Money, Money, Money

It’s not just the property you’ll need to pay for. The real cost of buying a home is far greater than the sale price of the property. On top of your deposit, there are a number of expenses and charges that you need to have budgeted for, so it’s important that you know and understand all additional fees, charges and taxes involved to avoid any unpleasant surprises. Some of the extra fees to be mindful of include:

Stamp Duty is a state government tax and one of the biggest costs you will pay when buying a home. This one-off cost is based on the purchase price of your property. Stamp Duty is usually paid prior to settlement, so you will need to have this extra money available to complete your purchase.

Home loan application fees will vary depending on the lender you choose, but could vary anywhere from $0 – $1,000.

Legal fees are almost unavoidable when buying a home and your solicitor or conveyancer will charge you a fee to carry out legal work on your behalf.

Your lender will require all security properties to be covered under a building insurance policy as a condition of loan settlement.

  1. Know Your Limit

Whatever you do, never buy what you cannot afford. It can be easy to convince yourself that everything will be alright once you get a better job or when that promotion comes along. Don’t. It is impossible to predict the future and you could stand to lose out, big time. So don’t risk it, this is one of those situations in which it is better to trust your brain, not your heart.

  1. Check for Potential Grants

Grants such as the First Home Owners grant may be available for you. Grants vary from state to state, and for couples and singles as well as waiving or giving generous concessions off the costs of stamp duty imposts. Make sure you investigate every option to save yourself some money. Have a look here Great Start Grant Queensland, for details on government grants in Queensland.

  1. Buying ‘Off the Plan’Purchasing an apartment or house before it’s been built is known as buying “off the plan”. This option can sometimes offer savings, but building amendments can be approved without your knowledge and if the build goes over budget, you could be slapped with the bill. If you decide to go off the plan, make sure you read the construction contract thoroughly and understand your rights and obligations.

The more you know in advance, the more you will feel confident when buying your first property. With this in mind, it may be worthwhile to consider consulting a mortgage broker. A mortgage broker is there to provide you with an independent opinion and to make sure you get the right home loan for your situation. If you’re in Brisbane or around Queensland and want balanced mortgage advice from someone you can trust, contact our friendly team at Multi-Choice Home Loans.