There’s nothing like buying your very first home. The excitement of knowing you can paint the inside whatever colour you like. The thrill of hammering a few nails into the walls for your favourite prints and not worrying about the consequences.

You want your first-time buying property to be as straightforward and stress-free as possible, and so do we. Here are some common mistakes to avoid when first starting out.

1) Seeking home loan advice from family and friends

There are certain things you can rely on your family and friends for advice about. Whether your haircut looks passable or if your Christmas jersey is endearing – for sure, ask them for an opinion.

But whether a certain home loan is right for you – that’s a question for the professional. Don’t take Uncle Jimmy’s word for it.

Buying a home will likely be one of the biggest financial decisions of your life and you want to make an informed choice. That’s why it’s so important to get professional advice about it.

As your mortgage broker, we will line you up with a competitive mortgage and explain why it suits your specific financial circumstances and goals.

2) Underestimating the true cost of ownership

When you buy your first home, it’s really important to have a solid understanding of all the costs involved. You won’t just need a deposit – you also have to think about other costs. Stamp duty, lenders’ fees and chargers, conveyancing cost and building and pest inspections are a few examples.

Once you buy the property, there are also ongoing costs to factor into your budget, such as rates, insurance, body corporate fees, maintenance and repairs.

We can help you to nut out the numbers and create a budget for your repayments and other costs, so that you are completely comfortable about your property purchase.

3) Getting the wrong mortgage

All the different home loan products out there can get overwhelming, especially for first home buyers.

Do you need an offset account or redraw facility?

Should you go with a fixed or variable interest rate? What is a split home loan and how does that work?

Our job is to understand your financial circumstances and guide you as you make these important decisions. We will compare the home loan market, find you the right home loan based on your current situation, and walk you through the home loan application process.

4) Letting your emotion get the best of you

It’s really important not to let your emotions cloud your judgement when buying your first home. A lot of people fall into the trap of buying with their heart and not their heads.

Do your research and make sure you are buying the right property for your needs, at the right price.

We can assist you every step of the way, even in those early days when you first start looking for a property. If you have a particular suburb or property in mind, speak to us about getting a property valuation report, so that you can gauge the capital gain potential.

Ready to get started?

Planning to buy your first home in 2024? Let us find you the home loan you need in order to achieve your property purchasing goals.

Get in touch today and we’ll get the ball rolling by organising pre-approval on your finance.

Thinking about purchasing your own home this year? How exciting!

The dream of homeownership is facing some new challenges, especially for those in their twenties. Recent data from the Australian Institute of Health and Welfare shows the rate of young adults owning a home dropped from 50% in 1971 to only 36% in the latest 2021 Census. Even for those aged 30–34, it fell from 64% to 60%.

But the dream of having your own home is still very much alive!

Here are 4 steps that you can take now, to put you on the path to buying your future home:

1. Start saving early and be smart with money 

Begin your journey to owning a home by saving money wisely. Consider following the 50:30:20 rule – put half your income toward essential items like food and rent, then split the rest between fun stuff (holidays, eating out) and savings. Following this rule has the potential to help you save consistently, no matter how much you make.

Build good money habits with simple changes, like cooking at home instead of ordering takeout, biking to work to save on petrol, or choosing home get-togethers over expensive outings to save up for your home deposit!

Learn more on how you can save for your deposit here.

2. Use credit wisely to avoid debt

Credit cards can be handy, but don’t go overboard. Missing payments or racking up too much debt not only messes with your finances but also hurts your credit score. A bad credit score can make it tough to get the right home loan when you find your dream home!

3. Consider all the costs of buying a home 

Buying your first home means dealing with more costs than just your mortgage. Think about all the associated costs such as:

• Stamp duty: Stamp duty is a one-off state government tax that’s based on the purchase price of the property.

• Legal and conveyancing fees: Get a conveyancer, specialised in real estate legalities, to manage paperwork, including the Deed of Transfer. They can address inquiries about property zoning and technical details

• House inspection and cleaning costs: Once you pick a home, hire professionals to check its condition. This helps you know what maintenance it needs and how much it might cost. Don’t forget the expenses for cleaning and fixing up the property. A cheap deal might turn into a money pit if you go for a fixer-upper!

4. Get help from a mortgage broker

As a mortgage broker, our role is to work closely with a panel of lenders — from the big banks, to the smaller lenders you may not be as familiar with — to ‘shop around’ in the home loan market on your behalf. But our job isn’t just about comparing home loans. We stay on top of market trends and changing lender requirements, so you can be confident in the recommendations we provide.

Even before you are ready to buy a home, we can offer valuable support by explaining the home buying process and working with you to ensure you achieve your property goals.

So, if you’re planning on making your home ownership dreams a reality this year, get in touch to team up with us today!

The wonderful thing about property investing is that it opens your world up to different ways to potentially build your wealth.

However, Australian Taxation Office figures released last June showed that a quarter of Australia’s property investments are held by 1% of taxpayers. The majority of those investors are over the age of 50.

If you don’t fit into this category, all hope isn’t lost! You can still approach property investment strategically now by following these 5 common rules successful property investors abide by.

1. They plan strategically

Successful property investors have a clear understanding of their investment strategy and long-term goals.

They know how much risk they are prepared to take on and this helps them to decide on the type of property investment that’s right for them.

They understand their borrowing capacity, stick to their budget and plan for contingencies (like major repairs) to avoid overstretching financially.

2. They understand volatility

As a property investor, it’s important not to panic at the first sign of a downturn or change in the market.

Experienced property investors understand that often the best gains are made over the long-term. Sometimes it pays to ride out the storm and prioritise sustainable growth over quick gains.

Knowledgeable investors also diversify. That might mean buying in different states or territories in order to mix things up and mitigate risk.

In 2023, we saw why diversification was so important, with the rate of home value growth varying greatly across the capital cities. Values rose at more than 1% each month on average across Perth, Adelaide and Brisbane after May, while in Melbourne and Sydney the pace of growth slowed sharply after the June cash rate hike.

3. They don’t procrastinate

If you wait and wait until the perfect time to invest, you may end up missing the boat.

Savvy property investors do their research and set their cards up, so that when an opportunity arises, they are ready to act. Having your finance pre-approved and ready to go is a great place to start.

4. They keep emotions out of their decisions

Property investment is about buying with your head, not your heart. Successful property investment requires a strategic approach, focusing on data and long-term returns rather than personal preferences. Remember, it’s your tenants who will make a home of the property, not you.

Investors who thrive in the property market are those who approach their investments with the acumen of a businessperson, focusing on the numbers and potential for growth.

This approach includes staying informed yet discerning, filtering through the noise of speculative media narratives to focus on solid, evidence-based decision-making.

5. They rely on specialists

Successful property investors know there’s only so far self-education can take them. You can listen to property investment podcasts and learn as much as you can from property investment books, but you’ll still need the right specialists to guide you through your property investment journey.

Mortgage brokers, real estate agents, financial planners, accountants, conveyancers, buyers’ agents, property managers – all of these professionals may help you make better, considered informed decisions.

Looking to invest in 2024?

Whether you’re new to property investing or want to grow your existing portfolio, we’re here to support you.

Talk to us about getting pre-approved on your finance so that you’re ready to start 2024 on a high – with an investment property purchase. Get in touch today.

References:
Yardney, Michael – 5 golden rules for property investment success, 28 September 2021.