There are currently many first home buyers in the market – actually 40% of purchasers are currently first home buyers!
Some of the important issues to consider before purchasing are location and type of property (apartment or house), price, amenities, changing needs, market conditions, interest rates or should you buy new, renovated or unrenovated?
Location – The most important consideration is proximity to employment. You need to consider the financial implications of this on your household budget.
Price – Purchase the best property you can comfortably afford. The best way to calculate what you can afford is to approach your bank/broker and find out what the repayments will be on the amount you want to borrow. Then prepare a budget saving the amount plus a further amount for maintenance and outgoings for 3 to 6 months to see the effect a home loan will have on your lifestyle.
Amenities – The most important amenities to consider are Shops, Transport, Schools, Recreation/Gym facilities, restaurants, entertainment and of course good coffee!
Changing Needs - A first home may become an investment property in the year so always remove or at least reduce the emotional component before purchasing and consider the properties potential for capital growth.
Reading the market – Timing the market is difficult but time in the market will provide financial rewards for the future. Currently low interest rates and the FHOG are providing an excellent opportunity to enter the market.
Interest Rates – Interest rates are at historical lows but they will not remain at these levels. If you are risk averse you can consider fixing a portion or all of your loan.
New, Renovated or Un-renovated – There is no right or wrong answer. If you are buying new it is likely to be a distance from the CBD. If you are considering being closer to the CBD then you are likely to be considering an apartment. The positive aspect to buying new or renovated is that all the work is done for you. The downside is that you may be paying a premium for someone else’s work.
An unrenovated property provides you with a terrific opportunity to add value in the short term but seriously consider how good your renovation skills are before considering this option.
Click here to listen to Cameron Deal chat with The Hump Day Crew.
For further information contact Cameron Deal at firstname.lastname@example.org or view http://www.infolio.com.au/