If you and your partner have been saving for a few years and have finally managed to scrape together a deposit, you are to be congratulated and the door is open to become a property owner. One thing you will be happy about is the fact that first-time buyers in Australia are exempt from paying stamp duty, which is a huge relief.
Obtaining Mortgage Pre-Approval
This is the first step, as no seller will take you seriously if you don’t have a local pre-approved. Talk to CK Lawyers conveyance solicitors and they can help you find a lender with favourable terms; either that or Google a mortgage broker, who has associations with numerous lenders and providing you have the deposit, your joint incomes should be sufficient to clear you for the loan. When you apply for a home loan, the lender will check your credit score and if you have any outstanding debts, they should be cleared before making the application.
Crunch the Numbers
It is an expensive exercise to buy real estate; there are other costs than just the deposit:
- Conveyancing & legal fees
- Furnishing the new home
- The cost of relocating
- Taxes
- Life insurance
Between you both, if you have enough money to pay for all of the above and can handle the monthly mortgage payment, you are ready to approach a few real estate agents and when you find the ideal home, talk to a local conveyancing lawyer.
Wealth Creation
Getting your foot on the bottom rung of the property ladder will pay big dividends later on in life; imagine the day when you make that final mortgage payment and you are now the owner! While it might be hard at first, as time passes, you are building equity and if land prices keep rising, you can expect to make some serious money.
Finding the Right House
One must be realistic, you won’t be able to afford your dream home just yet, even a small apartment is a start and the equity you make from that will be enough to pay for the deposit on a house in a few years and you can upgrade. Let the real estate agents do all the leg work and you can make a shortlist for viewing; just remember to obtain mortgage pre-approval, as the seller will not take you seriously, unless you happen to be paying in cash!
