Top 5 Tips For Buying Your First Home In Australia

Buying your first home is one of the most thrilling moments of your life. But it can also be a bit intimidating. A home is a massive investment and will likely be the biggest purchase you’ve made up until this point.

The process may seem overwhelming at first. But if you follow the right steps and have trusted advice there’s no reason why you can’t find a great deal, even if you’re new to real estate.

Here are five tips to help you buy your first home and enter the market.

Before you start looking for potential homes you need to determine what you can actually afford. There are a few factors that will determine your budget, but ultimately they are: how much you can service, your savings and your credit history.

• How much you can service: Your serviceability is based upon your annual salary and the expenses you have in your life. It is important to understand this in detail, to ensure you maximise your borrowing capacity for your first home purchase. The rent converters finance team will assist you with all things relating to this.
• Your Savings: Often there is misinformation around how much you need to have saved for a deposit to get into the property market. This will often scare First Home Buyers away from buying and have them stuck in the renting trap. The Rent Converters team will often help first home buyers get into the market with as little as $10k deposit.
• Credit History: Having a good credit history definitely does help secure your finance, however having a bad credit past does not mean that you can not get into the market. There are many ways to improve your credit score and fix the mistakes of the past. Our team can assist in this process also.

Most first-time home buyers only look at the cost of the property when determining their budget. However, there are a number of other expenses you need to think about, including:

• Legal costs
• Insurance
• Body corporation fees if you’re buying an attached dwelling
• Repairs and maintenance
• Council rates

Make sure to factor all of these costs into your budget so there aren’t any surprises after you finalise the deal.

Unless you have a large budget, you’ll likely need to consider all location types. While you might have dreams of an ocean view or living close to the city, you should be realistic about what properties are in your price range.

Sure, you might be able to afford something in your dream location, but it will probably be smaller than you’d like or need repairs. Instead, look to the suburbs where you’re more likely to find affordable properties with the size and amenities you’re looking for.

Do you want a little help paying your mortgage? You can always buy a home that has an additional suite and rent it out to a tenant. This can cover some or all of your mortgage, which helps you pay off your loan much quicker.

For example, a duplex is a great investment, since you can live on one side and rent the other side out to someone else.

Saving up enough money for a deposit is one of the biggest challenges for first-time homebuyers. Luckily, there are some grants available that can help you with the payment. Each grant has specific requirements, so do your research to see if you’re eligible for any of them.

For example, the First Home Owners Grant is a $10,000 payment available to Australian citizens and permanent residents who are buying their first home.

Want to take the hassle out of buying your first home? Rent Converters offers turnkey house and land packages. We take care of everything, including

financing, land sourcing, grants, and more. Best of all, we don’t charge you a cent for our services and can help you buy a home for as little as $10,000 down.