Home ImprovementFirst Time Home Buyers: The Ultimate Guide to Buying Your First Home

First Time Home Buyers: The Ultimate Guide to Buying Your First Home

Making the leap into home ownership can be both thrilling and daunting; but don’t make the mistake of overestimating how daunting the experience will be if you aren’t aware of how to get started. Navigating the lingo of real estate agents can be complex; with high cost homes in many locations of the United States making purchasing homes costly so being prepared is essential.

This guide is intended to address some of the most frequently asked questions regarding purchasing your first home, providing general guidance and answers from start to finish of the buying process allowing you to make informed choices about this important purchase decision.

How to find the right property

Your first home purchase is of immense significance as it forms the cornerstone of your journey towards homeownership. Given first-time buyers tend to have limited budgets compared to more seasoned homebuyers, budget is usually the deciding factor when selecting ideal properties and the optimal location to buy from.

Starting your property search off right, compile a list of amenities you want your new house to include, such as bedrooms, bathrooms and parking spaces as well as features you would like such as facing north or having an en suite bedroom as well as having a large garage, kitchen and backyard space.

Explore the Internet by inputting “must-haves,” suburb, and budget information into search parameters, then browsing suitable homes. Create alerts that notify you when properties that meet these criteria come onto the market; build an inventory of properties that meet them all (nice to own list); look them over with agents to inquire further, get estimates for cost; working with buyers agent near you can assist in finding properties not easily available to all, or make off market offers available to buyers without hassle.

If several properties don’t fall into your price range, you might need to alter some parameters, including number of bedrooms and bathrooms as well as location in suburb. Apartments, villas or townhouses might also offer cheaper living arrangements compared to freestanding homes; furthermore you might consider finding properties located closer together for easy travel between locations.

How to choose the best investment suburbs?

Location will ultimately depend on your goals for home ownership. If you’re seeking the ideal residence to reside in, its characteristics could differ than if you’re investing in real estate as an asset class.

Certain areas are more expensive due to their location, one of the primary factors for price increases. Homeowners usually move or upgrade every five to ten years; selecting an investment property whose value has increased rapidly will enable you to build more equity for upgrades when it’s time.

Homes tend to be more costly in areas with a high buyer demand and limited properties available for them to choose from. Houses tend to be more costly close to CBD areas or areas with the greatest concentration of jobs since buyers will pay higher prices to be close to work. Every city has certain areas which are more desired than others and these regions often cost more.

Each city offers houses that are within reach for first-time buyers. While these may vary in design, size and state; for example in suburban settings first-time buyers might be able to afford purchasing a three-bedroom home while one bedroom apartments might be all they can find that are comparable in price.

How to set a budget for your first home?

An expert mortgage broker or lender should be your first port of call before beginning your home buying journey. Even if you don’t have much saved, they will provide guidance as to the minimum deposit you should save based on the type of property you’re interested in and your income, assets, savings and credit score. In order to determine your maximum loan eligibility you will have to reach out to a bank building society or mortgage broker and they will assess you for eligibility based on these parameters.

Though lenders will give you an upper limit for borrowing, that doesn’t necessarily mean you must borrow up until then. Monthly mortgage payments increase when loans are larger; additionally, costs associated with owning a house such as council rates, strata fees and insurance could rise as well.

Check your income after tax and estimate the cost of ownership with other expenses such as food, bills, transportation education leisure and transport. If it appears there’s little left for extravagances like dining out or holidays you might wish to consider taking out a less costly loan until your income increases. Also consider ways of cutting costs so as to live more cost effectively while being a homeowner until income grows further.

Prior to setting your financial limits, conduct a “pressure test.” Can you weather a 2 percent interest rate increase without needing emergency savings funds, should your job become unstable? Even though you might feel secure now in your job situation, anything could happen at any moment; being prepared can ensure that if anything does arise that will ensure your survival.

What grants, incentives, and discounts do first-home buyers get?

These incentives are intended to assist buyers with the purchase of their first home. Most incentives require buyers to live in their home for at least 12 months and usually disqualify those residing with partners who previously purchased it; additional restrictions and prices can vary, and accredited real estate course change over time; therefore this guide may prove valuable if you have yet to attend an established real estate training course.

NSW first home buyer grants, schemes, incentives, and discounts:

  • There is no stamp duty applicable to newly built properties under $650,000, existing properties under $650,000, or vacant property valued under $350k.
  • Discounted stamp duty rates apply for new properties priced between $650,000 and $800,000. Existing properties between this range also qualify, or vacant land between $350k to $450k can receive discounted stamp duty charges.
  • Receive a $10,000 grant when purchasing new properties worth under $600,000 or building contracts worth under $750,000.
  • Under the First Home Buyer Choice scheme, qualifying first-time home buyers have the option of paying stamp duty upfront or selecting to pay their property tax at a reduced annual rate.
  • Leverage the First Home Buyers Assistance calculator to estimate how much stamp duty will be due on your home purchase.

Victoria first home buyer grants, schemes, incentives, and discounts:

  • *There is no stamp duty applicable to properties worth under $600,000.
  • Stamp duty discounts available on properties priced between $600,000-$750,000.
  • Reduced stamp duty on properties off-the-plan that cost less than $1 Million.00
  • Homebuyers who purchase homes under $750,000 qualify for a grant of $10,000.

Queensland first home buyer grants, schemes, incentives, and discounts:

  • There is no stamp duty applicable to properties under $500,000 or vacant land valued under $250,000.
  • Reduced stamp duty on properties up to $549,999 or on vacant land under $399,999.
  • Property developers that construct properties under $750,000 qualify for a grant of $15,000.

All first-home buyers pay some stamp duty.

  • There is no stamp duty applicable to newly built properties under $470,000 or vacant land under $281,200.
  • Discounted rate available for newly constructed properties between $470,001 and $607,000 or vacant land between $281,201 to $329,500.
  • $7500 grant available to purchase new properties of any value.
  • South Australian first homebuyer incentives, grants and schemes.

First-time homebuyers must pay a stamp duty.

  • Stamp duty concession is available for homes that cost less than $500,00 up to an amount of $21,330.
  • Various amounts for FHBs with newly constructed or existing properties built after June 2014.
  • $15,000 grant available for the construction or purchase of residential property that costs less than $575,000.

Western Australia first homebuyer incentives, grants, schemes and discounts:

  • Property values under $430k or vacant land valued below $300K don’t require stamp duty to purchase.
  • Discounted stamp tax for properties between $430,000 and $530,000 or land that is vacant between $300,000 and $400,000.
  • Receive a $10,000 grant when purchasing construction and land located south of the 26th parallel.
  • $10,000 grant available to individuals purchasing construction or land up to $1 Million dollars north of 26th north.

Tasmania provides first homebuyers with incentives, grants, schemes and discounts:

  • Stamp duty has been fully assessed and charged.
  • $30,000 grant available to help purchasers acquire properties of any value.
  • Northern Territory First Home Buyer Incentive Package, Grants, Schemes & Discounts:
  • Household Goods Grants up to $2000 are now available.
  • Up to $26,000 grant available to eligible purchasers to buy new properties of any value subject to eligibility criteria.

Find the right Buyers Agent

Buyers typically use buyers’ agents when looking for their family home, believing they need their knowledge and advice in order to make an informed decision and pay the appropriate price. In contrast, investing property usually requires taking on more expenses themselves due to emotional ties being less tied into it; experts may be beneficial if buying quickly becomes overwhelming; in this instance, agents could help increase chances of finding one which meets all their criteria perfectly.