The key to a successful first home journey.
It’s feels like it’s almost time, you’ve saved for a while, you’re tired of renting and you’re seriously considering making that jump into home ownership. A right of passage that lies within the proverbial Great Australian Dream…
It’s feels like it’s almost time, you’ve saved for a while, you’re tired of renting and you’re seriously considering making that jump into home ownership. A right of passage that lies within the proverbial Great Australian Dream… But you feel there’s still something holding you back, that uncertainty that’s bordering on anxiety around whether it ‘is’ indeed possible (it’s been so far out of reach for so long). Or you may still be battling with confusion about the home you want verses the property you may miss out on for one reason or another.
We get it it’s an important decision and one not to take lightly. It just may be the biggest investment you’ll make in your life. But let’s take a step back from the dramatic to understand the principles of owning your first home, clear the fog that may be consuming your mind, so you can enjoy this milestone for what it is, a very exciting time in your life and one you look back and feel very proud about.
Plan and be organized
It pays to dedicate time and effort into planning and organizing everything from your thoughts and preference to the nitty gritty around collating financial records and that will allow you to obtain pre-approval for finance. It’s not a necessarily a difficult process by any means but it does involve some specific thought and time.
Showing consistent planning and attention to detail around all aspects of obtaining finance to finally signing the final contract of your first home will not only make the overall process run smoother it will also allow you deal with any unforeseen circumstances with less difficulty should they arise.
The simple tips:
- Set a clear budget for your property and know your ceiling. This will allow you to not waste valuable time with properties that don’t meet your needs. It will also save you some heartbreak in finding out that home you stumbled across along your Saturday inspections isn’t a reality right now.
- Plan for the true costs of getting into your first home. There are unfortunately additional costs which you may need to factor into your budget. Solicitor fees, stamp duty, insurance, pest and building inspections and finally moving costs can all add up.
- Be proactive around setting up meetings or phone calls with lenders. Once you find a lender you’re confident in using for your finance make them an ally not an enemy
- Organize your paperwork and understand the aspects that may hinder your ability to get final approval on a loan. High credit card limit, existing credit,
These tips seem quite straight forward, but they really allow you to move fast once you have found the right property.
If you’re eligible for the first homeowner grant it is generally a straightforward process to apply.
Head verse Heart
When it comes to buying a home at any stage of your life emotion will always play a role. Our imagination can run wild and rational thought can often take a back seat. However, to ensure you’re setting yourself up for successful home ownership have a strong rational approach can make all the difference between living in your home stress free as opposed to having continue regret or concern about your decision. Obviously, the key aspect of this is the affordability of your home but it also come down to being rational about the type of home and the location.
For example are large block of land with many gardens may seem like a vision of paradise, but the rational side of you will have to pause and think whether you have sufficient time for upkeep and maintenance. A low maintenance turnkey package may be a better choice depending on your circumstance.
Home ownership doesn’t have to be stressful nor does it have to be the money pit many describe it as being as long as you find that balance between your head and your heart in making decisions.
First home buyers have many options available to them. Concessions on stamp duty, First Homeowner Grants (depending on eligibility) assist it broadening the range of options.
Building a new home entitles you to the First Home Owner’s Grant (FHOG) – a state government incentive that makes it easier for Australian’s looking to enter the property market.
As of 2019, the current value of the FHOG in Queensland properties is $15,000 if you are buying or building a new home up to the value of $750,000. This grant is only available to first time home buyers purchasing a new property or for people who are building their own property (or contracting with a home builder to do it on their behalf).
General FHOG eligibility criteria include;
- The home you are buying or building must be new and valued less than $750,000 (including land).
A new home is a brand new dwelling that has not been previously occupied as a place of residence or sold as a place of residence.
- You must be over 18 years old.
- You must be an Australian citizen, have a permanent visa or be part of a joint first home owners grant application, along with an Australian citizen. In some circumstances, New Zealand nationals with a special category visa may also be eligible.
- You must not have owned a home/property previously.
- You must not have been granted a first home owners grant previously.
You can read more on the First Home Owner’s Grant here
Newly built homes or Home and Land packages are a great option in getting into a new home sooner. Often being built within new communities, these properties are generally turnkey and low maintenance options
Building a home through a reputable builder like Valcon Homes gives a fair bit of freedom in terms of adding your individuality to your new home however it does require some additional thought in the short term around liaising with builder and managing your project.
Established homes can be a great choice and commonly give a broad choice of location for first home owners, however the choice on ideal location does come with a bigger price tag.
Clarify and ask Questions
Be an informed First Home Buyer/Builder. The greatest asset you can have in getting into your first home is arming yourself with knowledge. No matter how silly questions may seem it is worthwhile clarify any point you have to sperate the facts from the opinions. In doing so you’re allowing yourself to make the right decision for your future.
Whether it be your bank, real estate agent, solicitor or builder, it is there job to provide you with answer that won’t mislead you. But it is up to you to ask the right questions.
The home truth
Owning a home at any stage of life is one of the most significant and overwhelming undertakings an individual or couple may experience, and for First Home Buyers the challenges around getting into the property market seem endless. BUT, it is not all gloom and doom, even though it may seem difficult at first there are great options that award you the opportunity to not only own your home but have a lifestyle to go with it.
You can stop renting and get into your own home sooner with Valcon Homes – our first home buyer’s solution gives you the opportunity to enter the property market and build something of your very own.
We want to get you home sooner! $2K is all you need to pay now to get on your way to home ownership coupled with;
- 6-months rental history with a real estate agency
- A good credit history
- You qualify for the First Home Owners Grant
- You are able to fund the 5% balance of the purchase price and costs associated with purchase
*Eligibility criteria. Terms and conditions, credit and lending criteria apply.
There’s no better time than now to own! Contact our First Home build specialists and we’ll be in touch and have you on your way to owning your first home sooner than you thought.