Most First Home Buyers get pretty nervous in venturing out to a substantial financial commitment, but with the right real estate agent at their side who can provide you with honest advice – you would find the process less daunting. Your real estate agent in Wishart becomes your most valuable asset as not only could they find you the right house at the right price, but also help you throughout the process until the big day of actually moving in.
One of the most important financial decisions that you would make in your life’s journey is buying your first property, whether it is for investment purposes or to make it your home. It could also be most exciting but also stressful and frightening at the best of times.
In recent years, house prices in all capital cities including Brisbane have seen double digit growth which is a great thing if you are already in the market. However, not so good for the market entrants. The good thing is that there are still many suburbs where First Home Buyers could pick up older style homes at really good prices. Then, with a bit of modernisation, you would be sitting on a valuable investment in the years to come. Some of these suburbs include Mount Gravatt, Wishart, Mansfield, Upper Mount Gravatt and Mount Gravatt East.
While it is true that buying their first home has being almost unreachable in recent times for most young Australian couples, especially if reliance was on a single income, there is also a number of positive factors at play which has made life a bit easier in recent months for some borrowers. These factors include a) historical low interest rates and b) the First Home Loan Deposit Scheme.
Here are 6 top tips for First Home Buyers in Brisbane:-
1. Documentation and records
Make sure that your tax records are all up to date and that you have all your documentation in respect of income both wages and other income. There is nothing worse than getting your papers and finances in order at the last minute. Be organised and well prepared – your mortgage broker would love you for it.
2. How much you could borrow vs how much could you afford (to pay)
Approach your Mortgage Broker to ascertain the maximum that you could borrow. Then, sit down with your partner and do a family budget taking all expenses into account. In General, your budget should be done to synchronise with your pay dates. However, some couples may wish to do a monthly budget, and that is fine even if you do get paid weekly or fortnightly. The key is that your mortgage repayments must be affordable. A couple of bits of advice in deciding on your budget:-
– It is advisable to factor a 1½ – 2% increase in interest rates into your mortgage repayments.
– Keep aside some funds for some fun and entertainment and also allocate for contingencies such are medical expenses.
– If applicable, expenses for the kids such as School fees must be taken into account.
3. Request for pre-approval from your Lender
It is ideal for you to obtain pre-approval from your lender before you start actually searching for your property. This is particularly important to ensure that you do not waste your valuable time and also that of your agent. Stay within the pre-approval amount and you would be doing yourself a favour as you would not let your heart run away with a higher priced property which would ruin your mind-set in the long run.
4. Do your research and don’t go for the glam
The importance of research and research done well must not be under-estimated. Ensure that you study the market by looking at the major real estate portals on a weekly if not daily basis. Go for as many Open inspections as you can to understand the market. Look at Auction results every week-end – they are the best indicator on pricing and the state of the market at any given time. Most importantly, forget the glam – it is generally true that the best property to buy is “the worst house on the best street”. Search for a property where you can make changes to the kitchen, bathroom appliances, floor coverings and landscaping. These things go a long way in enhancing the value of your property investment by a long way. One key aspect that you must consider is the size of the block, its location and aspect. Access to public transport and schools are also particularly important.
5. Keep Notes
It is important that you keep detailed notes of each property that you inspect. Make sure that you spend as much time to thoroughly inspect each property. After each inspection sit down with your partner and discuss the pros and cons of the property. Keep it objective and steer away from emotion. You need to make every decision based on fact and not on your heart. Make sure that you compare each property against your checklist. In this way when the right property comes along you would know straight away.
6. Find the Right Real Estate Agent in Brisbane
Your Agent is your new best friend – this is even more so for all First Home Buyers. A good agent will help you navigate through the process and also will be able to answer any general questions. If you have any questions, feel free to call Royden Juriansz at Realty8 who would be able to answer any questions that you may have.