If you’re a First Home Buyer looking to get into the property market in the next 12 months, you’re no doubt feeling excited – but may also be a tad overwhelmed about where to start your home buying journey.
If that’s the case, don’t fear, you’re not alone! For most First Home Buyers the process of finding and buying their first home is fairly daunting when they set out, but it doesn’t have to be that way.
“There’s a reason why we always aim to take the emotional drain out of making decisions around property transactions,” says My Expert® Founder and CEO, Brett Wadelton. “That’s because we see how stressful the pursuit of purchasing a first home can be – especially if you’re trying to save a deposit or break out of the rental market.”
Jarod Mills, Sales and Marketing Manager of prominent land developer, Parklea, agrees. “Buying a home is the biggest purchase most of us will make in our lives. This makes it a time of great anticipation, which can often add pressure and uncertainty for new buyers.
“We would recommend any First Home Buyers looking to enter the market ensure you take your time to educate yourself and find a team of experts that you can trust to take you along this important journey. Obtaining insightful and accurate information from finance experts, building consultants and land agents will help provide a smooth entry into the property market.” We’re excited to announce that My Expert® and Parklea have joined forces to present an online First Home Buyer Webinar this Wednesday, October 27 at 7.00pm. Here’s a sample of the tips Brett and Jarod will be sharing with attendees:
Get your finances and deposit sorted.
If you’re getting ready to buy your first home, it’s important to have your finances organised and deposit sorted, so you’re well prepared when you go to apply for your loan.
This will let you take the next step and get your loan pre-approved, so you can put in an offer when you find the right property (as long as the seller and their sale contract conditions allow you to make the offer ‘subject to finance’).
In that way, you establish your financial position and readiness to apply for a home loan and get an indication (although not a guarantee) as to home much the bank will let you borrow.
Brett says one of the main benefits of having a mortgage (as opposed to renting) is that it encourages you to save. “When you’re renting, saving is optional, and if you’re not saving and spending your money on other things like holidays and cars, especially early on in your adult life, the chances are you’re not going to achieve the discipline around saving that you might otherwise have as a homeowner. “I fully encourage our clients to live and enjoy their life. However, with a bit of structure and future planning around what you’re doing with your money – like saving a deposit and buying your first home, then a bit further down the track using the equity in your home to buy an investment property – you’re going to end up in a far stronger financial position than a renter over your lifetime.”
Chose a location that ticks all the boxes.
Parklea has spent the past 50 years creating thriving, beautiful, safe and sustainable communities that offer residents the very best amenities available, especially in the Cardinia and South-East regions.
From his experience, Jarod says it’s important for First Home Buyers to make sure
the locations you’re looking at tick all the boxes – not only in relation to your budget, but your and your family’s needs and expectations as well.
“History will show us that buyers will generally purchase in an area they are familiar with, with existing networks to family, friends and employment,” says Jarod.
“Most new growth corridors are spoilt for amenity in these emerging areas; however, it is very common that this new infrastructure is proposed. If you can, purchase in an area where you are satisfied with the existing level of amenity (shops, schools, transport) as these new projects are often delayed, or may require larger catchments to trigger the new amenity.
“Then, over time, you will enjoy the uplift in access to these services. Be wary if what is being used in promotional material – some of this amenity might not be delivered for 5 to 10 years.”
Before you settle on a location and make a decision to buy, Jarod recommends you should first consider the following factors:
- Do a trial or test of your new commute time to schools, shops and employment.
- Spend time in local parks or walk around these new areas to see if you can picture yourself living there.
- For new developments, visit the developer’s previous communities.
- Satisfy yourself with the levels of existing amenity.
- Acknowledge that the future amenity will take time to become established.
- If you can tick these boxes, you will enjoy the benefits of a new community as it establishes over time.
Understanding the property settlement process.
While buying a home is a substantial financial commitment, it also involves making a significant legal undertaking when it comes to signing the Contract of Sale.
That’s why when entering into such an important contractual agreement you need to get the right professional advice, so you fully understand what you’re agreeing to.
A Conveyancer is a licensed professional whose role is to act as your agent through the settlement process and ensure all the legal requirements are covered. This includes undertaking a thorough review of the Contract of Sale, arranging a final inspection of the property and finalising the transaction on your behalf on settlement day.
The importance of protecting your new asset.
It’s regrettable but real-life events can and do impact people’s ability to make their mortgage repayments. It’s not something we like to think about, but in buying your first home you need to ask yourself how you or your family would pay the mortgage and bills if you can’t work for an extended period due to illness, injury, or even death.
We recommend all new homeowners seriously consider personal insurance – like life, income protection, and total and permanent disability insurance – as a crucial part of their home buying journey.
There are also benefits to applying for life insurance when you’re young and healthy. It’s generally cheaper and means you don’t have to worry about getting cover later if your health changes.
Don’t miss the opportunity to hear more Brett and Jarod reveal more great tips and insights at our First Home Buyer Webinar this Wednesday, October 27, starting at 7.00pm. To watch the event live and free on Zoom, simply click the following link to register
Disclaimer: The information provided in this blog is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this blog you should consider the appropriateness of the information having regard to your objectives, financial situation and needs, and it is important for you to consider these matters and to seek appropriate legal, tax and financial advice. Pinnacle Advisory Pty Ltd trading as My Expert® Wealth ABN 36 638 505 950 is a corporate Authorised Rep of MG Wealth Advisors Pty Ltd AFSL n. 496089 ABN 20 617 338 137.