10 Points to Consider Before Buying Your First Property

Young couple sitting on the floor considering path to first home ownership

Owning your very first home is a cherished dream, but let's face it – it can be quite the rollercoaster ride. The maze of information to navigate, especially if you're a first-time buyer, can feel overwhelming. But fret not; we're here to guide you through the essential considerations for your inaugural property investment.

Here are 10 points you should consider before your first property.

1. Assess Your Finances

Before you dive into property hunting or scouting the ideal neighborhoods, take a deep dive into your financial situation. It's paramount to ensure you can comfortably manage those monthly mortgage payments.

Don't forget the upfront costs associated with the home purchase. These upfront expenses are more impactful on your monthly budget than renting.

It's about creating a well-informed budget that accounts for your mortgage payments and sets aside funds for maintenance. If feasible, test your new budget for three months, ensuring you allocate a sum each month for potential upkeep.

Your action step:

Analyse your finances and make sure that you can afford the home loan repayments every month.
Don’t forget the upfront costs of buying the house too.
Understand the impact it will make on your monthly funds far more than rental payments do.
Go through your budget with your mortgage broker who will help you understand your actual cost of living and how the banks calculate this.
Use a calculator to get a better assessment of your borrowing power.

2. Explore the Neighbourhood – Do Your Homework

Dive into extensive research about the neighborhoods you're eyeing. Understand property trends and prices in the area. Engage in conversations with local real estate agents to glean insights into the neighborhood's pulse.

What's the valuation criteria for properties in the region?

How does it align with your budget?

Familiarising yourself with the local dynamics provides a clear picture of the property's current value and its potential for appreciation over time.

3. Unearth Potential Property Issues

Before you commit, ensure your dream property doesn't harbor any hidden surprises that could become future liabilities. Scrutinize the interior for signs of termites or mold. Assess the safety and security of the neighborhood. Examine appliances, cupboards, and cabinets for potential issues. Test various house features like toilet flush, heating/cooling systems, fireplaces, and water pressure – ensure everything is in working order.

Don't shy away from asking questions and demanding thorough inspections.

Your action steps:

Check out the interior of the house for possible termites or moulds.
Examine the safety and security around the neighbourhood
Inspect the dryers, dishwashers, cupboards and cabinets for possible infestation.
Test the features of the house such as toilet flush, heating/cooling system, fireplace, water pressure and make sure all is working.

4. Partner with the Right Professionals

When your financial stakes are high, it's imperative to work with seasoned experts. Find a meticulous and licensed home inspector who can unveil any potential costly repairs.

Work with a mortgage broker like us, Sandcastle Finance to to structure your finances effectively.

We’re all about helping you enter the property market sooner rather than later

Also, to prevent conflicts of interest, ensure your lawyer doesn't represent the seller of the property.

Young couple sitting on floor looking at laptop with boxes behind them and taking notes

5. Be a Savvy Buyer

Remember, there are plenty of properties out there. Don't feel obligated to settle if the deal doesn't align with your requirements.

In any financial transaction, especially one of this magnitude, the deal must meet your needs.

6. Master the Art of Negotiation

As the buyer, you have the leverage to negotiate. Don't hesitate to assert your interests and ensure you secure the right price and terms for you.

7. Don't Rush Your Decision

There's no need to rush. Phrases like "Make an offer before someone else grabs it" might be designed to hasten a sale but remember, your property purchase is a long-term investment.

Take your time and make informed choices.

8. Be Patient in the Search

Finding your ideal home may take time. Be prepared for a journey that could span months. If you're currently renting, consider month-to-month agreements to maintain flexibility - so that you can move without penalty.

Young couple sitting on floor of apartment looking at home buying options

9. Tap into Government Grants and Schemes

Check your eligibility for stamp duty concessions and other incentives. Reach out to Sandcastle Finance for a no-obligation, complimentary call. We're here to address any queries about initiating your first home purchase.

10. Secure Pre-Approval

Don't let property approval stall your progress.

Get preapproval ready to confidently make an offer on your dream home.

Owning your first home is a significant milestone, and with careful planning and the right support, your dream can become a reality. Remember, Sandcastle Finance is here to assist you throughout this exciting journey.