Hi any good tips for a first home buyer to buy in Australia?

Home Forums Buying at Auction Hi any good tips for a first home buyer to buy in Australia?

This topic contains 1 reply, has 2 voices, and was last updated by  Ed Person 3 years, 6 months ago.

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  • #843

    Steve Simons
    Participant

    Hi any good tips for a first home buyer to buy in Australia?and what are some good areas that are cheaper?
    anywhere in australia that have good long term growth? My budget is small around $100,000-$200,000.I’m just seeing my options as i have no idea at the moment and just started researching.Thanks

    #848

    Ed Person
    Participant

    What are you looking for in your first home? Having a clear idea from the start will save the amount of time you spend searching on the net and staring in real estate agency windows.

    Here are some things to tick off on your mental checklist:

    Location
    How far are you willing to travel to get to work?
    How good are the local schools, shopping centres and other public facilities like parks and sporting grounds?
    How convenient is public transport?
    If you’re prepared to renovate, think about that other real estate cliché that’s stood the test of time: “Pick the worst house in the best street”.

    Make a list
    What do you like about where you currently live?
    What don’t you like about where you currently live?
    How many bedrooms and bathrooms do you want—or really need?
    What are the essentials: balcony, laundry, garage, views etc

    Do your homework
    Check out recent home sale prices and auctions in your preferred areas. Look at market trends, houses for sale and suburb statistics.

    Get home loan pre-approval
    It can be heartbreaking to find the perfect place only to learn that you can’t afford it. Even worse is losing your deposit because you won at an auction but couldn’t secure finance for the balance of the purchase price. Don’t risk it.

    Take notes and use checklists
    Turn your priorities into a personalised home-shopping checklist and use it to track the features of each home

    If you know the vendor’s reason for selling a property you’re interested in, it can help you in your negotiations. Estate agents often advise their clients not to give a reason for selling, or to simply say ‘relocation’. But there is no harm in asking, either directly or indirectly.

    Sometimes an estate agent will let slip that the vendor has already bought elsewhere, or needs to move for their job. Reasons such as these suggest that the vendor will be looking for a quick sale—something that you can factor into your negotiations.

    Other questions that will help first home buyers are:

    When does the vendor need to move out of the property?

    How long has the property been on the market?

    How many offers have been made on the property?

    as the property been passed in auction (and if so, what was the highest bid?)

    Is the vendor open to offers before Auction?

    How long have they owned the property?
    The answers you get to these questions will obviously give you an insight into how ‘negotiable’ the price is.

    Some other questions for apartment hunters:

    Is the property Foxtel enabled?

    Does the apartment above have floor boards?

    Does the body corporate allow BBQ’s on the balcony?

    Is there much noise in the building?

    What % are tenants vs. owner occupiers?

    Is there visitor parking

    These are the most common mistakes that first home buyers make. Make sure you don’t fall into these traps:

    Changing jobs or making a major purchase at the same time as applying for finance.
    Not getting your finance pre-approved, and leaving everything ‘too late’ when the ‘right’ property is found.
    Borrowing right up to the amount the lender is prepared to loan you, and then getting over-stretched financially.
    Letting emotions take over in the negotiation process, and paying too much for the property—or missing an opportunity to negotiate more favourable purchase conditions.
    Not checking out things such as council zoning, building approvals and restrictive covenants.
    Buying a ‘do-up’ and then running out of money. Renovation is not a cast-iron route to riches, and if it turns out to cost more than you bargained for, you could be living in squalid circumstances for too long.
    Forgetting to sort out property insurance well before you move in, and forgetting to tell the utility companies!

    THAN LAST BUT MORE IMPORTANT!!

    DO NOT BUY A HOUSE WHERE YOU HAVE TO RENOVATE THE BATHROOM! its annoying, costly, a headache, time consuming even if you use contractors. Make sure the bathroom is in really good condition

    When you get you building report, thoroughly read over it. Highlighting all the defaults you must fix. Than tell the realestate that the house price needs to drop accordingly to the fix er uppers.

    Watching the market constantly (i did for 2 years) you find the houses that never sell. It’s located in the wrong place for others, people were looking for the something bigger.

    If you are a small family or just starting one. a 3 bedroom or even a 2 bedroom with a study is fine. No-one rarely ever keeps the first house they bought.

    And lastly. Look in area like NSW Broken hill where mines are expanding with 400km of the place. Or places like QLD Guru where a mine will be opened in 5 years time. Mining brings jobs and people. People needs houses. House demand rises. Lack of housing. Pricing goes up. and walla 20%-50% returns.

    Good Luck.

    PS want any more tips feel free to mail me. Just click on the name.

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