Tips for First Home Buyers
The NSW Government has recently announced stamp duty has been abolished for first home owners for properties up to $650,000 and with discounts on properties up to $800,000 from 1 July.
Here are some tips for first home buyers looking to get into the market:
- Save, save, save: Focus on saving as big a deposit as possible which will reduce your mortgage and will provide equity.
- Fixed or Variable: Take the time to research which type of loan will suit your needs. With the current cash rate sitting at 1.5% since August, it is tempting to look at a fixed loan, however if you will need finance a renovation through your home loan, then a variable rate may be more suited.
- Know your budget: Consult a financial planner as well as your bank or mortgage broker and determine exactly how much you can borrow and spend. This will help you when searching to target the right properties and will ensure you don’t spend over your limit.
- Research is key: Known your target market by researching, attending open for inspections, attend auctions and read up on local sales in the area. When you finally find the right property, you will have a great understanding of what it should be worth.
- Try not to get emotional: When buying your first property, think with your head not your heart. It is very easy to fall in love with a beautiful home, however if it is outside your means or requires too much work, be prepared to let it go.
If you would like any advice from the team of experienced agents at Professionals Padstow, we would be more than happy to discuss your property needs to help you find the perfect first home. If you have any tips for first homeowners trying to get into our local market, please share your comments over at our Facebook page.
