How do you know when you're ready to buy your first home?

How do you know when you're ready to buy your first home?

So, you want to buy your first home!  Are you ready? You think you’re ready, but are you really?

Everyone you speak with is going to have an opinion and want to put their 2 cents worth in! While it’s good to take all of this on board, you need to make sure you gather as much information as you can so you can make an informed and educated decision. A cool market might sound good and everyone might be saying buy now, you better hurry…. it’s a ’buyers market’ and this might indicate you could get yourself a bargain, but realistically the best time to buy your first home is when you’re ready!

The decision to buy has to be more personal and one that should be made independently of the market and what everyone else is doing. We don’t have a crystal ball and we don’t really know what’s going to happen to house prices in the coming months or years. Your agent can make an educated forecast, but it’s just that, a forecast at the end of the day. But if you have made the decision to commit to being a home owner you need to get yourself organized! A good way to approach it is like you would any business decision, be informed, ask questions, work out what you need to do from a financial point of view and even though your girlfriend has seen a house that’s just ‘sooooo cute’ or if you’ve seen one with a massive shed that would make an ‘awesome man cave’ these places may not be the best investment for you! Don’t just buy on emotion alone. Your first home doesn’t have to be a replica of the Taj Mahal! It just needs to be comfortable and something that you can add value to and hopefully won’t degenerate into a money pit! By being able to value add, when the time comes to upsize and start planning and searching for your next home, you will be in a much better financial position to upgrade comfortably.

Your first home is probably going to be one of the biggest financial and personal commitments that you will make. You need to figure out if your funds will stretch for the mortgage and everything that goes along with being a home owner, while still having something left over for you to actually Live! That’s why speaking to a mortgage broker first up is the best place to start. Find out exactly what you can and can’t do before you go shopping. This will put you in a great position when it comes time to negotiate a contract when you find the right house.

So, you’ve been to the bank, got your finance sorted, you now know what you can comfortably borrow and more importantly what the bank will lend you!  You’ve worked out a budget, taking into account what you might have to spend on some reno’s, insurance, rates, utilities and general upkeep of the house. These are all things you need to consider when you become a ‘home owner’!  If you’re buying with someone else, work out what each of your financial contributions and commitments will be…. NOW you can go shopping!

A great place to start is the internet of course! Get a feel for what property prices are doing in different areas. It’s a good idea to actually make contact with a real estate agent. You can meet with one of our agents to discuss what you are looking for and let them assist you in finding something. Our agents will listen to you, take your wish list into account and contact you when something comes up that they think might suit you.  Just go out and look, look at everything! It might mean you look at 50 properties, but eventually you will find The One! And you will know instantly if it’s the one! You will be excited, your agent will be excited, your Mum will be excited, more so because she can see the light at the end of the tunnel when you will finally be out of the house! And then the next bit can be the most exciting part of all……the time to actually buy it!

   ……………….…. next time…… You’ve found the Right House! What Next?!

First home buyers
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How do you know when you're ready to buy your first home?