Many people nowadays struggle to get onto the property ladder in Australia. The prices for new homes has been rising continuously over the past 10 years and if you are a current property owner, then that’s great news. However, if you are one of the young families trying to buy their first home, then it is the opposite of great news.
It’s difficult for a young family to make long-term plans about the size of the family that they want, if it is almost impossible to find a home that will suit their circumstances now and in the future.
It’s a lot of hard work
Initially, there has to be a lot of hard work done to raise the deposit that is required by all lending institutions. Then, there is what seems to be endless paperwork, numerous copies and lots of signatures before the loan is even approved. Many people don’t even get beyond this point and are turned down for the mortgage loan. This is a difficult situation to handle for most people and so anything that you can do to better prepare yourself, so that these kinds of things don’t happen, needs to be embraced.
The following are just a few tips to help first-time buyers navigate the whole process and hopefully come out the other side with a success story to tell their friends and family.
- Start saving as soon as possible – Once you have the ability to start saving money, then that is the time to start doing it. Due to the difficulties with getting a new mortgage now, quite a lot of lending institutions insist on 10 or 20% of the deposit in cash before they will even consider your application. Some mortgage lenders will allow you to put as little as 3 to 5%, and while this might sound like a great deal, you will end up paying more over the lifetime of the mortgage. It’s up to you to figure out how much money you want to save up in order to be able to put down the large deposit that you can reasonably afford. There are a number of property companies out there that would be more than happy to assist you, such as https://www.granvuehomes.com.au where you can view stunning home designs and dealing with an experienced builder will ensure that the purchase will be a wise investment.
- Explore your mortgage options – There are many mortgages out there to choose from and it can get a little bit confusing after a time. It’s up to you to do your homework and find out exactly all of the terms and conditions attached with the various mortgages. Some may appear to be too good to be true, and in most cases this is very definitely the case. You need to have your wits about you and you need to shop smart. This is probably going to be the biggest investment that you will make in your life, so you need to get it right.
Buying a new home doesn’t have to be a daunting prospect and it should be a happy time for most people. With the right preparation, you are sure to find a home that you might be able to live in for the rest of your life and be able to make the monthly payments, until it is paid in full.