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Buying a Home is exciting!

first home

YES! Buying a home is exciting!

Without doubt, buying a new home is a very exciting project irrespective of what anyone says!

Unfortunately for many singles, couples or families this excitement is often overshadowed when family members or friends share a negative experience or pass on ill-informed advice to the potential new buyers.

I hear and see this all the time and it makes me mad! It even happened to myself…..what the??

I remember when I purchased my first home back in 1995, I too was the recipient of some of this “advice” (and I use this term lightly). Comments like you must have an offset, you must have a big deposit, don’t go to that bank, call this bank, do this, do that and the best of them all…….is now the right time to buy? Have you experienced this, many have!It can be very frustrating not to mention confusing!

Whilst it is fantastic that those close to you are concerned enough to offer suggestions, sometimes these typeof comments can do more harm than good! You will hear me say (quite often mind you), if you break your leg you don’t go and speak to your mechanic for advice on how to fix it! So why would you take on advice from someone is not part of real estate industry? The answer is based on the perceptions that are out there – real estate agents/house sales people and mortgage brokers are only in it for the commission, they don’t care about the buyer – you!

It is true that real estate agents, new home consultants and mortgage brokers derive an income from the sale of a house (and it’s financing). It is also important to note that real estate agents & mortgage brokers are governed by strict code of conduct. There is government licensing involved and questionable conduct is dealt with by the industry bodies that act as a watchdog so there is protection for clients. Like in every industry there are “shonky” operators out there, so it is important to talk to reputable businesses and seek out people who you can trust. This way you know what to expect and you are getting good advice.

Most people know when the time is right – you know when you know! So here are my thoughts on buying a home and some important things for you to consider.

RESEARCH – Determining where you want to buy and your budget is a great starting point for all Home Buyers. For some, the decision to build or buy established is a big one and requires due consideration as there are benefits to both. REIWA & RealEstate.com generally have suburb profiles and you can speak to professionals like an accountant if you are considering an investment. The clearer path you set for yourself here, the better it will be in the long run.

PROPERTY TYPE – a villa, a house, a unit, a farm, 2×1, 3×2 or 4×2 are all decisions home buyers need to weigh up when building or buying a house. If you have done your research up front it would be safe to say that it is about outlining your requirements and comparing one home against another. Be sure to list all your requirements out and if you are buying with a partner or someone else make sure you discuss each other’s lists so everyone is on the same page.

PROFESSIONAL ASSISTANCE – it is for common for home buyers to continue researching other areas when buying a home things like conveyancing, finance and inspections are popular. Thankfully professionals who act in these areas are here to assist you. When you pay someone for their services, they work for you and have your best interests at heart – remember that’s why you are using them. A mortgage broker sources the best finance package for your needs, a conveyancer (settlement agent) co-ordinates the sale process on your behalf and makes sure you obtain title to the home you are purchasing and a building inspector ensures the house is structural sound and free from defect. Put your trust in those who do this every day!

FINANCE – Finding a home loan is one thing but gaining an approval is another. To secure the best finance solution you have to be “Financially Fit”. Being financially fit means that you are in the best shape possible to gain a finance approval and more importantly have a broader choice of who you will use for your home loan lender. We often assist clients where there options are limited, the selection of banks have little depth, the ability to choose is really important. Ensuring you have clean credit, strong stability in your employment and residence and have a healthy deposit will make your application more appealing to a variety of banks.

LONG TERM PLAN – working very closely with a builder, I see many first home buyers spend up big on their home design and its extras. I suppose it is the way of the world now, but it doesn’t need to be. With people moving into a new home every 7 years (on average) over capitalising on your first home makes little sense. In my opinion it is better to enter the market sooner rather than later. Always consider higher prices and affordability into the future. Ensure you have a plan for what you do with the current house when you move into the new house, if your plans are to rent it out then you have to consider what improvements you make to it now.

These are just a few simple ideas to help you, I cannot stress enough that not everyone is an expert when it comes to buying or building a home – owning a home is not a qualification.

All in all, any way you look at it buying a house whether it be your first home, up grading or buying an investment property is an exciting time. It represents a new beginning, a growing family or planning for your financial future, so embrace it – I do and that’s why I love my job!

Until next time, take care

Dean

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