Property Sales    Property Management    Mortgage Brokering

What should I do, if I want to buy my first home?

Buying your first home can be a very stressful process and it certainly helps if you take a very systematic process in buying your home.

Finance & Budget:
This first thing to do is to sort out your finances and work out a budget. It is probably best to sit down with a mortgage broker to go through the numbers and to determine what amount of cash you will need as down payment as well as how much of a loan will you be able to get from the banks. There is really no need to secure any pre approvals as most of the time, pre approvals comes with conditions attached. What you need to do is to know where you stand when it comes to negotiation and also in all your offers, it will always have to be subject to finance. It is best to have 28 days to obtain your finance. As a guide, you will likely need the following:
– 20% down payment if you want to avoid Lenders Mortgage Insurance (LMI).*
– 5% down payment if you are prepared to pay Lenders Mortgage Insurance (LMI).
– You can also do without down payments through Key Start. You can check out the qualifying criteria at their website.

*- Look out for further blogs on what is LMI?

Once you have your finance and budget sorted out, you will have to decide on where you would want to live. The things that you will need to consider will be:
– Schooling
– Proximity to your work place
– Amenities
– Affordability
With the above, you should be able to narrow down to a couple of suburbs. I would strongly recommend not having more than 3 suburbs to work on.
With this in mind, you can start your search using various internet sites such as:
Bear in mind that not all agencies list with as they are relatively expensive although this website has the widest coverage. So, from a buyer point of view, you should check both “Realestate” and “Reiwa” or “Domain”.
Start visiting home opens to have a feel of the types of property you will be able to purchase with your budget. You need to get a good feel of the type and size of home. Typically, if you get an older home, you can secure a larger size block. If you go for a newer home, than it is likely to be on a much smaller size block. Its all about compromise but your aim is to get into the property ladder.

Seek expert advice:
It is always wise to seek some advice from people you know and are comfortable with. However, bear in mind that everyone has a different opinion. As a service, Oasia offers free RP data information to all our clients to help them make a more objective decision on pricing. We will offer information on the latest transacted prices in the surrounding area and that will give you confidence in putting in a reasonable offer and at the same time to ensure that valuation will come within your offer price.

Enjoy the process:
Bottom line in going into this venture is to enjoy the process. Give yourself time and I would say at least 3 to 6 months. If not, you will be under pressure to pick something that you may regret. Remember that you are not buying a dress but in this case, it is one of your largest commitment ever, so make it wisely and take your time in arriving at that decision.