17 Dec 2010
Entering the real estate market for the first time can be a daunting process. It’s hard to know when it’s right to take the plunge and whether your lifestyle and finances are suited to home ownership.
Recent stories about the property market in Australia probably haven’t helped buyer’s opinions either, but the truth is no matter what you hear, or what end of the cycle a property is in, it can always be a good time to buy a house if you do your research and invest wisely.
So why are you waiting to buy a home?
“My deposit isn’t big enough” – This is the biggest issue for a lot of first time buyers and saving up thousands of dollars obviously isn’t that easy to do, but you have to start somewhere. Try putting away even a small amount each week, if you can, and give yourself a financial goal you can stick to. A lot of people even overestimate how much money is required for the kind of property they’re after, so you may not even have to save as much as you first thought.
A home deposit is normally about ten percent of the purchase price. If you are lucky you might even have a parent or family member who can help you save, otherwise you may also be eligible for a first home saver account
where the Government helps you save money for a first home.
“I’ll never be able to save for the house I want” – The truth about many of our first homes, is that they aren’t the dream home we always imagined. Most people’s first homes end up being a downgrade from what they can afford to rent so you may feel a little put off. The reality is that most people can’t afford the perfect home first time around, but the sooner you get into the property market the sooner you will be able to trade up to a bigger or better property.
“I don’t think I can commit to a long-term mortgage” – When people read their mortgage terms and realise it will take them 20-30 years to pay off their home loan, they naturally get a little scared. But don’t let these numbers scare you because you might not end up owning the home for that long anyway.
Most people sell or upgrade their homes before they finish paying them off, and others try and pay extra money towards their mortgage to pay their loan off quicker.
If you still aren’t sure it might help talking to a financial advisors or mortgage brokers to get an idea of what you can afford to borrow.
If you think you are ready to get into the Liverpool property market, then come visit me at the Professionals Paradise Realty Casula
office and I’ll be happy to answer any of your questions as best as I possibly can.