The Secret to Successful Property Buying: #First Home Buyer
7 Things To Save When Preparing to Buy Your First Home
Congratulations! You have decided to buy your first home, your first piece of land or your first purchase of an investment property. The decision to enter the property market can be daunting and especially if you are just starting out in the real estate market place and buying your very first property. It does not have to be daunting or overwhelming but you have to know our Kathryn Hall Real Estate Property Buying Tips.
Today at Kathryn Hall Agency we are going to discuss preparation.
Preparation is important. Do you know what the interpretation of “luck” is? It’ s good preparation meets opportunity. It’s simple but often overlooked.
So let’s start the “luck” process and it all starts with preparation.
Here are the KH Agency 7 things to Save when preparing to Buy your first home.
Tip # 1: Eliminate any Debt you may have. Get it down by at least 20%. In fact clear all of your credit cards and work towards 3 months of no credit card debt. Any personal loans? Pay them out and if you have had a bad debit or credit card issue over the last 5 years you need to revise and address this problem.
Tip # 2: 6 months Emergency Fund. Yes you will need to have some spare cash just in case something unplanned for occurs. Remember plan. Preparation is the key to “luck” and we need “luck” to help you get your first property. Our many years of experience as a Buying Agent in real estate starts, always, with preparation.
Tip # 3: Minimum 6 to 20% deposit saved, depending on loan type. Our recommendation is to save 30% deposit and you will become the banks new best friend.
Tip # 4: Budget monthly payment of 25% or less of take home pay. This can be combined take home pay. Don’t forget to additionally budget for electricity, gas, water and council rates and if you purchase a strata title unit, budget in the strata levies as well.
Tip # 5: Remember to save and budget for the closing costs, such as the balance of any council rates, strata levies and water rates that the previous owner may have paid, and the biggie is stamp duty.
NSW has stamp duty but as a first home buyer you may be eligible for a stamp duty free concession which is worth thousand of dollars. Check the link to stamp duty https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/ transfer-duty and for stamp duty exemptions look at https://www.mortgageworldaustralia.com.au/blog/stamp-duty-exemption-nsw-are-you-eligible/
Tip # 6: Budget for bank and loan appraisals as well as pest and building inspections. Your lender will want to value the property, so ask your lender how much this will cost? Also you solicitor will charge you, so ask them their conveyancing costs.
Tip # 7: Budget for extra housing costs such as moving costs, furniture, maintenance and utilities set up.
It may seem daunting but remember start preparing early, start your saving as early as possible and best advice we can give you is use a buyers agent as they could possibly save you thousand of dollars at the purchase point.
We at Kathryn Hall Real Estate have been buyers agents for over 30 years and we love to help our clients buy wisely.
Contact us at info@kathrynhallreakestate.com.au or www.kathrynhallrealestate.com.au
Happy house hunting
Kathryn Hall
