Top tips to master property hunting as a first home buyer

Buying your first home in Ormeau can feel overwhelming, especially when you're not sure where to start your property hunt. The good news is that with the right techniques and preparation, you can approach the property market with confidence and find a home that suits both your needs and budget.

Understanding Your Financial Position Before You Start

Before you start scrolling through property listings, it's crucial to understand your financial situation. This means knowing exactly how much you can borrow and what your monthly repayments will look like.

Getting pre-approved for a home loan gives you a clear picture of your borrowing capacity. When you apply for a home loan pre-approval, lenders will assess your income, expenses, and financial commitments to determine your loan amount. This process typically requires recent bank statements and documentation of your income.

Your loan to value ratio (LVR) will also play a significant role in your property search. If you have less than a 20% deposit, you'll likely need to pay lenders mortgage insurance (LMI), which can add thousands to your loan costs.

Exploring First Time Home Buyer Programs

As a first home buyer, you have access to several government initiatives that can make homeownership more affordable:

• First home owner grants (FHOG): These grants can help reduce the upfront costs of buying a home
• Home Guarantee Scheme: This program allows eligible buyers to purchase with as little as 5% deposit
• Stamp duty concessions: Many first time home buyer schemes include reduced or waived stamp duty
• First time home buyer programs: Various packages offer interest rate discounts and fee waivers

These benefits can significantly impact your budget and expand your property options in the Ormeau area.

Setting Your Property Search Parameters

Once you know your budget, it's time to define what you're looking for. Consider these factors when setting your search criteria:

1. Location priorities: How important is proximity to schools, transport, or your workplace?
2. Property type: Are you looking at units, townhouses, or houses?
3. Essential features: What must-haves versus nice-to-haves do you have?
4. Future needs: Will this property suit you in 5-10 years?

Remember that your first home doesn't have to be your forever home. Many buyers start with a property that meets their current needs and budget, then upgrade later.

Smart Property Hunting Strategies

Research the Local Market

Spend time understanding property values in different areas around Ormeau. Look at recent sales data and current listings to get a feel for what different price ranges offer.

Attend Open Homes Strategically

Don't just visit properties in your price range. Attend some above and below your budget to understand what features and compromises come at different price points.

Consider Properties with Potential

Sometimes properties that need minor cosmetic work or have unusual layouts are priced more competitively. If you're handy or willing to renovate gradually, these can offer good value.

Build Relationships with Local Agents

Real estate agents often know about properties before they hit the market. Being friendly and maintaining regular contact can give you early access to suitable properties.

Choosing the Right Home Loan Structure

The type of home loan you choose will affect your ongoing financial commitments:

• Variable interest rate: Rates can go up or down, affecting your repayments
• Fixed interest rate: Locked rates provide certainty for a set period
• Offset account: Can help reduce interest charges over the life of your loan

When applying for a home loan, you'll have access to home loan options from banks and lenders across Australia. Working with a mortgage broker gives you access to banks and lenders nationwide, rather than being limited to one institution's products.

Making Your Move

When you find a property you love, you'll need to move quickly. Having your finance pre-approval ready and understanding the application process puts you in a strong position to make competitive offers.

The streamlined application process that many lenders now offer can help speed up final approval once you've made an offer on a property.

Remember, if your plans change in the future, many of the same principles apply when looking at your first investment property or investment loan options. The knowledge and relationships you build during your first property purchase will serve you well.

Your property hunting journey doesn't have to be a solo mission. Professional guidance can help you understand your options, access better loan packages, and make informed decisions about one of the biggest purchases of your life.

Call one of our team or book an appointment at a time that works for you to discuss your property hunting strategy and home loan options.