Buying your first home can be a daunting experience, and although you’ve probably had advice from just about everybody you know; there’s no better way to learn that to dive in head first yourself. Interest rates are rising, as you probably already know, and government grants aren’t as great as they once were many years ago – but by following a few easy tips you can make the process much more bearable. Here are some helpful tips for new home owners in Australia:
Make Sure You Plan Your Budget
Honestly; there’s really nothing more important than taking the time to properly plan your budget when buying your first home. Even when you’ve got the keys to your new house, you might need to rethink your budget and rework it to suit the current situation. This will also allow you to work out how much you can afford every week when you begin to organize your home loan. Speak to experts like State Custodians for guidance on how to plan and cover your mortgage payments.
Don’t Buy Anything That You Can’t Afford
Never, ever buy a property that you can’t afford. You need to know your limitations and be realistic; don’t ever convince yourself that you will only struggle for a few years until you or your partner get that big promotion – you don’t know what’s just around the corner! You could lose everything, plus the second time round you won’t get the first home owner grant or any other incentives that help you to purchase your first home.
Save As Much Deposit As Possible
Saving a large deposit will help you in two main ways. The first is that it will show the lender that you have control over your financial situation, and the second is that you’ll have more equity in your home right from the start. What does that mean? Less interest for you to pay! To help you, take out an Australian Government First Home Savings Account. Most big banks offer this savings account, as do most credit unions and building societies. You can save up to $80,000 and is only taxed at 15%, while the government contributes an amount equal to 17% of anything saved up to your first $5000!
Apply Early On For Your Home Owner Grant
You should apply for your Home Owner Grant at around the same time you apply for your home loan. You can do this through most lenders, providing they are an authorized agent; if you do this it’ll be processed much faster than sending it to your State or Territory Revenue Office.
Clear All of Your Debts
You should never apply for your first home loan if you carry excess debt. Make sure your car is all paid off, you’ve gotten rid of any credit cards, and anything else you can do to clear outstanding debt and make this home loan your top priority.
Research What You Are Eligible To Receive
The different State and Territory Governments offer various incentives to first time buyers. They do this with grants, and by giving concessions off the cost of stamp duty imposts. Whatever is offered in your locality, make sure you research what you are eligible to receive!
With these tips for new home owners you’ll find the process of buying your first home much simpler. Don’t worry – just organize, plan, and save; and you’ll soon be enjoying life in your new home!