Buying a home for the first time in Australia can be an exciting and overwhelming process. Most young people who buy for the first time are priced out of certain lucrative neighbourhoods. Mortgage concerns are on the rise. Still, it’s wise to buy a home young without risking housing prices going up even higher, especially near metropolitan areas. Of course, buying a home is not an easy task to do right away. There are initial steps prospective homeowners must complete before jumping into the market. Here are several things first-time buyers should do before they put in a down payment for a new house:
Decide to Build or Buy
First of all, prospective homeowners should decide whether to build a home or buy a new one. The common practice is to buy a home, whether new or old, from a real estate agent. But building a home is an option too. Most buyers don’t consider this option firsthand because they think building a new home could be the more expensive option. Not necessarily. There are great land and home deals that can actually be more cost-effective to build rather than buy. Also, homeowners can control expenses, such as on materials, when building a home to keep the overall costs low. More importantly, those who choose to build can decide exactly how their future home is going to look like. No need to stay in a cookie-cutter home. Weigh in both options and carefully decide whether to build or buy firsthand.
Tour Show Houses
Before purchasing or deciding to buy, prospective homeowners can tour display homes or show houses that look very close to the finished product. This is highly recommended because it’s never wise to judge a future home by the concept art alone. Check out several show houses to find out how the interiors actually look like once the house is built. It could also give prospective homeowners good ideas about how they really want their future home to look like.
Research the Neighbourhood
Don’t judge the value of a property on the purchase price tag alone. There are so many other considerations that go into making a home valuable or not. Location is a key factor. Good locations are determined by two things—how the neighbourhood suits your lifestyle and needs, and how the neighbourhood is perceived overall. Housing prices may be low in certain neighbourhoods where crime is rampant, but it’s not wise to move into these areas. The value of the property may never increase in the future and the risk is too high. Also, even if you find a decently priced home, the area might not have the facilities you might need, such as parking lots or a school. If the commute to work is too far, then you will have to spend more in the future in terms of time and fuel costs. Therefore, thoroughly research the location before moving in.
Learn about Local Regulations
Don’t forget to find out what, if any, local regulations affect your new home. If you want to renovate the property in the future, make sure the regulations allow such things. Also, if you plan on doing things like running a home-based business, first learn about what the local authorities have to say about that. And don’t forget to assess your future needs either. If you plan on having kids, for example, buy a home with plenty of room.