Moving from our current home to a new address has become so much easier over the 10 years. This is due largely to the ‘information revolution’ that we are living in.
Information and the large amount we can access even helps us in the emotional upheaval that some endure when they shift from your current address to your new location.
Since we are in the age of easy access to almost any kind of information – homebuyers young and not so young are looking at different areas to buy and live in like never before.
There is loads of info about all the important things that make up any area and it is available in the newspaper and on the radio and TV and most popularly it is on the net at ours homes and workplaces (don’t tell the boss!!).
We all can easily access surveys that talk about the postcode that is the healthiest or the happiest or the youngest or has the most employment or the most child care centres or the…..
The only tips that I was given before buying my first property was to park in the street one day and see if there were any smells from industrial pollution. It was genuine advice, but since I was looking in a seaside area where the closest industry was at least 20 k.m. away seemed irrelevant in the excitement of looking to buy when I was single.
Given that most homebuyers now change address every 3-5 years, we don’t really have to have a crystal ball to know if we will like the same area in 30 years time.
It is important to consider our current stage of life and maybe what we want/need in our property in 2-4 years time. Consider questions like: can/will I start a family here, will my next promotion or job require me to move to another region or city, if I get married could a potential spouse like the area/ the property, is it a suitable property to renovate if my lifestyle requires.
I heard some people talking today about moving house. They had heard that there are lots of noisy parties in the new location, so they plan to cruise the area on a Friday and Saturday night and see if they can find any likely suspect ‘party places’.
We can buy based on a real estate agent formula for selling property or you can look to buy according to your own needs.
There are some very good real estate agents about. They are the ones who ask (and listen to the answer) about what you are looking for in a property, what your needs are and what price range you are comfortable with buying in.
I will go into more detail about the real estate agent in the next 2 weeks.
Archive for the 'New Home' Category
Over the last year, my clients that are First Home buyers have ranged in age from 18 years to 70 years (yes, he got his loan approved). This is in contrast to the misinformation in the press that says that it is now too expensive to buy your first home.
The issue of age in itself is not generally a problem to lenders.
Banks and non-bank lenders will generally approve applications from First home buyers like anyone else – based on the merits of the whole application.
Many people mistakenly believe they have to save for a deposit before they can approach a lender for a home loan.
Worse still many think they first have to establish a credit rating before they can get their first home loan.
Buying a home can be easier and more affordable than many have been led to believe.
Brad Thrupp of Admiral Home Loans admitted that first home buyer applicants tend to be a couple that both work and have no children. Because they have 2 incomes they tend to be able to buy a great home and when they don’t have other personal loans and credit cards they can usually comfortably handle the payments.
When I met a young couple recently, they asked what are the costs involved with buying our first home (besides the actual purchase price).
I explained that the main costs included;
• Legal fees (actual professional costs for the solicitor advice and guidance as well as the various searches they do). Most firms have a set fee depending on which city/shire that you are buying in. Most clients would not go over budget if budgeted $1700 for legal costs.
• State Government fees. For most first home buyers, this will be about $800 to cover the cost of registration of the mortgage and registration of the title. There are extra fees if the purchase price is over $500,000.
• Bank fees. Most lenders have establishment/ application fees some don’t (but you will find that most lenders fees – by whatever name will be covered inside $1,000.
• Building and Pest inspection. Some companies do one or the other, but the easiest way to go is with the companies that do building AND pest inspections. Most service providers will do this for $450 to $600.
• Mortgage Insurance is by far the biggest outlay that first home buyers have to cover. Mortgage Insurance has a premium that is paid by the borrower essentially to protect the lender in case of default on the loan repayments. As most First Home Buyers will borrow 97% of the purchase price, the cost of the mortgage insurance will add up to as much as $10,000 (much more in some cases – it depends on how much you borrow and the % of the purchase price that you are borrowing). Some first home buyers don’t have to pay mortgage insurance. This happens when they have a friend or relative who also offer their home as extra security.
It is really amazing to see how people become more confident as the process unfolds. They start out just wanting to buy their own place, and then it grows into a learning experience of jargon, alternatives and deadlines, culminating to the big day when they get the keys.
The reasons many first home buyers manage to get into their own place is because they;
• become committed to their goal
• they ask lots of questions
• potentially can borrow up to 100% (110% in some cases) of the purchase price.
• First Home Owners Grant (FHOG) of $7,000 is a big help with some of the costs I spoke about earlier
• They don’t get put off by ‘doom and gloom’ articles in the media
First Home Buyers can also be First Home ‘BUILDERS’.
Yes, lenders will still finance construction and the government will still give them the FHOG.
A young couple I know are expecting their 2nd child soon. They are building what will be their first house. They have a new game they play called the “daily drive by”. They go to the site every day to see where the builders are up to. The builders don’t mind if they come in and have a look around and take an interest in how it all takes shape and becomes their home on handover day.
I met a guy the other day who said he recently read that the best time to buy was 25 years ago. The next best time to buy is now. That is what I call a timeless statement.
Enjoy looking for your first home and don’t forget, the best place to start is;
• ask your Mortgage Broker how much you can borrow and
• what the repayments are that will suit you.