So you want to buy your first home, what’s stopping you?
Many people have reservations about purchasing their first home. This article will cover the common perceptions people have:
I prefer renting
It is commonplace to hear that renters prefer the ease of a rental agreement and the property they are already established in. Many people prefer renting due to the convenience of being able to move regularly, have less responsibility for payments or upkeep of the property and the fact that it is usually cheaper to rent.
It may be that you have a very good deal on your rent payments. The issue is this rent is likely paying off another person’s investment; when in fact you could be paying off your own investment by purchasing.
The key factor is the decision on whether to make sacrifices today, in order to one day own your own home and never pay rent again.
I don’t think I can afford it
One of the biggest initial mental hurdles is affordability. Even the deposit on a home may seem like it is out of reach. However as with anything of worth, you need to plan and break down the payments into small sections. A strict budget and goal setting is ideal. If you focus on the total price of the property you will become disheartened and invariably put off taking the first steps.
It’s too much responsibility
For a lot of people, buying a home seems like too much responsibility and hassle. It is true that there are more items to consider when purchasing and maintaining a home, however the long term benefits will outweigh the negatives.
If I hold out maybe prices will drop
The real estate market as with any national demand and supply based market is hard to predict. Due to the sheer size of the Australian market price changes are significantly different between states, suburbs and even streets. It is best as a new home buyer to consider a ceiling purchase price and aim to find the ideal property within your price range. If you hold out for a drop and the prices rise, then you could be priced out of the market completely. At the time of writing there are significant first home owners grants available to new home purchasers that can significantly reduce initial costs.
I understand all this but I still find it complicated
When entering into the initial stages of purchasing your property; research as much as possible and verse yourself in the ‘real estate lingo’. Understand your strengths and weaknesses and thoroughly plan and research the properties you would consider within the suburbs you desire.
After evaluating your strengths and weaknesses, don’t be afraid to consult professional advice from reputable agents, such as Alert Property Group.
The next step is to understand the buying and selling process and if possible plan it out (including costs) so you can budget accordingly. Ensure you widen the opportunity to find the best finance available by considering all loan products. Discussing your future plans with an experienced accountant may also be of benefit.
Finally, taking the leap will be much easier after researching and planning has been completed. The anxieties you were initially feeling will likely disappear and you will realize that the process doesn’t occur overnight.
If you require experienced residential agents, contact Alert Property Group.