Finish school, get a job and then buy a house – if only it was that straightforward!
Today, a more realistic scenario would be; finish school, get a job, rent a room, rent a unit, rent a house, rent a better property and then buy a house.
Buying your first home can be both exciting and nerve-racking. It’s no wonder that so many decide to wait. According to research, average borrowers wait until their late 30s before making the biggest financial commitment of their life – buying their first home.
So how do you make the leap from renter to home owner?
A regular savings habit
A history of regular savings in your bank account and a solid track record of employment will make it easier for you when you apply for a home loan.
Pre-approval for loans
Compare a few different loans before you decide. Ask your lender for a key facts sheet on each home loan so you can compare more easily. Once you choose a home loan and have been pre-approved you’ll know what the repayments will be and how much you can afford to spend on a property.
A substantial deposit
The bigger the better when you’re saving for a home. Some banks allow 5% deposits while a deposit of 20% of the purchase price means you don’t need home repayment insurance.
Sufficient funds for loan repayments
Do the maths. If you can commit to your repayments without any hiccups, you a very close to buying your own home.
Additional savings
Additional savings act as a buffer should interest rates rise and your repayments increase. Alternatively, you can opt for a loan that allows extra repayments so you can build a buffer early on. You may also need these funds for home maintenance, taxes and bills.
Stamp duty
One of the bigger upfront costs you may have to pay is stamp duty or transfer duty on your property. If you are a first home buyer, check what stamp duty concessions you are entitled to.
In Queensland you can claim a first home concession if you are buying a property valued at less than $550,000.
Find out how much you will need to pay using the calculators on the following website.
Start looking
Once you’ve done your homework, you can start looking for your first home. To get you started here are some of our top picks for properties under $500,000.
Everton Park, your new Townhome awaits you
Everton Park, shopping, transport and parks! Walk everywhere.
Golden Beach, beach at your front door
At Hicks Real Estate we are a professional and dedicated team of professionals, here to help you with any of our first home buyer questions and property guidance.
For more information please call us today on: 07 3355 6845.
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Hicks Real Estate Team
Hicks Real Estate is a Brisbane based, full-service real estate agency supporting buyers and sell as well as renters and property investors. With almost 20 years experience in the local market, we are the real estate experts you can rely upon.
