Home Buying in Australia for First Timers

Getting into home ownership league is a daunting idea for anyone especially for first time home buyers like us. We've been told and we've read everywhere that it's just getting harder each year to be a home owner in Australia with the property prices just hitting the roof .

No one can tell you that you're ready to get into the market but yourself. If you're really keen to get your first home you need to prepare, save money and be willing to make some sacrifices while saving for your deposit.

Here are some tips to help you prepare for your first home ownership:

• Save as much as you can for the deposit. You should try to put in as much money as you can for the deposit to
•  keep your monthly amortization fee low, 
• to avoid paying the loan mortgage insurance (LMI) if the deposit is less than 20% of the cost. I was told that one can secure a loan for as low as 5% deposit and I personally know someone who paid no deposit at all.
• there are a lot of hidden costs to home buying
• As you build your home, you'll find that there are a lot of upgrades that you would need and want for your home.

By simply setting a goal to save for your home deposit can help you be aware of your expenses and be able to identify possible sources of savings. Simple things like limiting the times you eat out or have coffee out, being savvy shopper and buying things on special and in bulk when cheaper, avoiding over stocking and wastages in the kitchen, cutting down on your clothes and fashion shopping, turning off unnecessary lights, heating or cooling system. When you focus on saving for your home, I'm sure you'll find a lot more ways to save.

• While you're saving for the deposit, look around for houses and places that you would want to buy or build on.  Drive around the community that you want to live in to check out new developments and visit display houses.
• This will inspire you keep on saving for your home goal.
• This will help you limit your search.
• This will give you the feel of the neighbourhood and the community before you make your final decision.

• Check out property websites such as domain.com.au and realestate.com.au to be updated on real property market. 

• Decide if you want to buy an established house or build a new one. There are pros and cons to buying and building a house and you need to know your personal  preference, your budget and the pros and cons of each.  If you decide to build a new house, you might entitled to some government grants depending on the state you live in. In Victoria, first home builders get $10,000 grant and we pay 50% less on stamp duty.

• Be updated and monitor which bank provides the best loan package or consult with a mortgage broker. There's nothing to lose if you will get an appointment with a bank or mortgage broker to consult about your home goals, most of them are very willing to help and give information. They can do an initial assessment of your loan application, talk to you about the charges that you should expect and also guide you on target savings depending on when you plan to buy.

• Talk to friends or your families about their experience when they bought or build their homes. You may be able to get more tips from them or they can refer to mortgage brokers, banks or even to people who can help lower the cost of your building such as carpenters, electricians, painters etc.

• Don't change job when you are close to loan application. Make sure you have a secure, stable and regular job close to your loan date. This will help with your approval process and will also save you from worrying about your amortization.

There are endless list of tips for people who are aspiring to buy their first home but at the end of the day it is your determination to achieve your goal that will help you. Good luck on your first home!