13/12/2022
Everyone needs a place to stay but not everyone knows how to buy their first property. Today I am sharing some simple steps on how you can own your first home!
Step 1- knowing your budget
Always try to work out your budget. Often people will think about how much they are willing to spend on a house but did you know you have to take in consideration for a down payment for some houses? That is why people prefer to get houses that are still under construction as developers would usually offer a 0% down payment scheme and many other fee reductions such as legal fees when buying from them even if it’s not your first home.
For first time home buyers, there are government initiatives such as My First Home, however, you would still need to take into account additional costs such as, stamp duty and other miscellaneous legal fees.
Step 2- Finding the property
When buying a home, we should list which factors do we prioritise when looking for a place. It could be ranging from the environment, strategic location, size and many more. These kinds of factors can heavily impact the property value in the long run.
There can be numerous other properties around that area too, and this is why we should do our research before buying into a certain residential area or house. You might just find the one that ticks all the boxes and get a better deal in the end of the day.
Step 3- Secure Financing
There are many kinds of loans that are tailored for everyone. But for the general public you’re going to need to secure financing from a bank. It’s important to check your financial health before applying for a loan. By using a debt service ratio (DSR) calculator we can make sure that you’re not stuck with too many debts as a higher ratio can leas to a loan getting rejected.
One of the easiest way to check your if you’re financially healthy is by using your CTOS score to assess your suitability for a loan. A basic report is sufficient to give you a rough estimate on whether it is possible for you to get financing.
Overview
We should always plan ahead before getting a home. By using some of these steps you may be able to find the best deal that fits into your criteria. Engaging a property consultant or agent could ease this process as these professionals know how to navigate through the tricky legal paperwork, financing options and advise on the whole process leading to the purchase of the home.
