Buying your first home is an exciting milestone, but there are certain realities about the process that often go unmentioned. Here are 10 facts about purchasing your first property that people don't tell you.
1. Stamp Duty Can Sting
While you're busy crunching numbers for your deposit, don't forget about stamp duty. This tax can be a substantial expense, varying depending on the property's value and location. Factor it into your budget to avoid any financial surprises.
2. The First Home Owner Grant Varies
Most people are aware of the First Home Owner Grant, but its value and eligibility criteria differ between states and territories. Research the specific conditions in New South Wales to maximise the benefits available to you. NSW First Home Buyers Assistance Scheme
3. Auction Dynamics Require Strategy
Auctions are a common method of selling property, and navigating the dynamics can be challenging for first-time buyers. Understand the auction process, set a budget, and be prepared to act decisively to secure your dream home.
4. Inspections Are Essential
Don't overlook the necessity of comprehensive building and pest inspections. These are not just formalities, but a crucial step in the process. They can reveal potential issues that might not be apparent during a casual walkthrough and will help you to avoid unexpected repairs down the road.
5. Ongoing Costs
Beyond the mortgage, there are ongoing expenses associated with homeownership. Property taxes, insurance, utilities and maintenance costs can accumulate. Factor these into your budget to ensure you can comfortably manage the financial responsibilities of owning a home.
6. Don't Apply For Other Credit While Applying For A Mortgage
Buying a new home means a lot of big and small costs, so it may seem like applying for another credit card would be a good idea. You should avoid doing this unless absolutely necessary. Extra credit cards and other loans can negatively affect the amount of your pre-approved mortgage or even mean that you don't get pre-approval. Wait until after you've purchased your new home to apply for more credit.
7. The Emotional Rollercoaster of the Process
The home-buying process is an emotional journey. From the excitement of finding your dream home to the stress of negotiations and the anxiety of waiting for loan approval, be prepared for a rollercoaster of emotions. Patience and resilience are key.
8. Consider the Future Growth of Suburbs
The property market is dynamic, and suburb growth can vary vastly. Consider the future development and potential for capital growth of the suburb you are buying in. This foresight can be beneficial in the long run.
9. Neighbourhood Dynamics Matter
The neighbourhood you choose is just as important as the property itself. Research the community's safety, schools, amenities, and overall atmosphere. Take the time to explore the neighbourhood during different times of the day to get a feel for its dynamics.
10. Negotiation Isn't Just About the Price
While negotiating the price is a significant aspect of the home-buying process, don't overlook other negotiable factors. Closing dates, repairs, and even furniture or appliances can be subject to negotiation. Be clear about your priorities and be ready to compromise. While the process of buying your first home can feel overwhelming, being armed with these lesser-known facts and speaking to a good real estate agent can better prepare you for the journey ahead. Approach the experience with enthusiasm and a practical mindset, and you'll build a foundation for a successful and fulfilling homeownership journey.