Home ownership. Getting your feet on the first rung of the property ladder. Moving out of your family home, your rental or your homeshare and into your own place. Just imagine - a home of your own, filled with all the stuff you love, in a location you want to be, where you can live life the way you want to.
No landlords, no inspections, just freedom.
Sounds pretty good, right?
Buying your first home is a seriously major milestone, and planning for it can be a major reality check. It’s not like buying a car. It’s a long-term commitment, and there is some research to do first. But that doesn’t mean it can’t be fun!
Even if you’re not a numbers nerd, there are people who are happy to help you through the process, from knowing how much you can borrow, to finding your dream home - like the team from Parcel Property.
So let's talk money! #
Knowing your budget and being informed of the latest government grants that might be available to you is an important step for all first home buyers. And it goes without saying that setting a realistic budget and sticking to it will help to alleviate the potential for financial stresses later down the track!
It is helpful to get pre-approval on your loan – that way you know your exact budget when you are shopping around. Remember that there are often extra costs that may increase the amount of money you need, such as mortgage insurance, bank fees, furniture and landscaping for new homes. So be realistic, not only about your current financial circumstances but also about future costs, to work out how much deposit and monthly mortgage payments you can afford. There is lots to think about when becoming a home-owner, like the cost of rates and utilities, or strata levies if you’ve chosen an apartment.
A simple borrowing calculator can be an easy way to start so you don’t waste time looking at properties that don’t fit your budget. A lending specialist such as a bank or a finance broker can guide your budget and any savings goals you may need. A finance broker - someone who works with a range of lenders to find the best deal for you - could even help buyers access loans with little to no genuine savings required. Usually 20% of the full value of the house is a good amount to aim for as a deposit. You can still get a loan with a smaller deposit, but you may need to take out Lenders Mortgage Insurance (LMI) which adds an additional cost to your loan.
Now it’s time to start thinking about how, and where you’d like to live. #
Are you a party person who loves entertaining at home? Then you might enjoy a large alfresco area, integrated with your living areas. Are you working from home, and want a dedicated workspace? Do you need more bedrooms for extended family? Or is it a lock-and-leave you need, while you’re off working elsewhere or exploring other places. Maybe you love gardening and want a larger block for this, or you’d be happier in a low-maintenance apartment. All these lifestyle questions are important considerations when it comes to choosing a house design.
Choosing the right location is also a key consideration. Do you prefer to live in an area you know already, near family or friends? Do you have kids, or plan to? Find out what schools, parks and playgrounds are in the area. Ditto if you need walking areas for your four-legged furry housemates! Do you dream of living close to the beach, or love being close to bushland? Is public transport something you need? In which case, check out how far away the nearest train station is. Being close to cafes, restaurants and good shopping can be a dealbreaker for some, for others it might be more important being convenient to health facilities. Once you’ve worked out your priorities, it will be easier to find an estate that’s close to where you want to be.
Parcel Property has a wide range of residential estates north, south and east of Perth, some close to the coast, others surrounded by nature, all close to modern convenience. To find your perfect block or house and land package, talk to us. We’re here to help!
