Tips for First Time Property Buyers

Buying into the real estate market should be based on a sound assessment of the individual or couple's ability to afford such a move and whether it really is in their best interests.

There is no doubt buying property at the right price can be a sound investment for the future and many will use the argument that rent money is dead money.

However, it is a matter of timing.

Buying property is a time consuming task and, let's face it, if you are going to spend the amount of money required even for a small holding you should be prepared to invest time and effort as well as money into the exercise.

Start by going over your financial situation.

You may feel you are too young or not far enough along financially to require professional assistance, yet this is an excellent time to find a financial planner with whom you feel confident. They can help you recognise any gaps in your financial matters that need to be addressed before you seek finance for your purchase. This will ensure you present with a strong case when you do seek a mortgage.

The next step is to ascertain how much you can afford to spend on a property, taking into account buying costs such as stamp duty, mortgage insurance, conveyancing costs and removalist fees.

Once you have a budget, you can start to look at properties in areas you think may be suitable.

It's always a good idea to put on paper your requirements such as the number of bedrooms and bathrooms, do you require a lock-up garage, room for a growing family and whether you need to be near established transport routes.

It is better to make this wish list as detailed as possible and then go over it and prioritise what features are a must and what you would consider a bonus.

If you are hoping to buy an established property, take a few hours to wander through a display village and gain an idea of current building costs. This can be helpful when it comes to negotiating the price of your chosen property as you will have a good idea of what the actual buildings would cost if you were to replace them.

However, check whether the prices you obtain are for basic or luxury inclusions.

When you compare these costs with an established home, be aware that many of the inclusions or 'extras' in the existing home may add significantly to the cost of building a new dwelling.

Look within your chosen area but also be open minded enough to consider other properties.

More resources on Mortgage and Home Loan finance can be found at
Mortgage Directory
Mortgage Brokers
Mortgage Lenders
Reverse Mortgages

Originally submitted by: Sam Shaw