Tips for buying your first home
Buying your first home can be a daunting experience. For many prospective homeowners, it can be difficult to know where to start. In this comprehensive guide, we’ll take you through the fundamental first steps of the process. We’ll cover the initial financial aspects of homeownership before discussing what to look for in your first home. Following that, we’ll take a look at why Eynesbury is one of Melbourne’s best new residential communities, particularly if you’re someone looking to buy for the first time.
How to plan to buy your first home
There’s a lot to consider when you’re buying your first home. Our advice is that planning and preparation make everything far more straightforward! In this guide, we’ll take you through a four-step checklist of what you’ll need to consider in the process, which will look something like this:
- Document your income, including your forecasted income and savings;
- Document your expenses, including loan repayments and council rates;
- Secure pre-approval on your home loan;
- Find your first home, based on factors like location and house quality.
Why is Eynesbury the best place to buy a first home?
When it comes to buying your first home, there is no place like Eynesbury – a fully- contained world adjoined by 288- hectares of Grey Box Forest. A strong community of 3000+ including young couples and families, Eynesbury is home to everything a budding household could want.
There are so many layers that make this place special, from the rich history of the 150-year-old locally sourced bluestone Homestead and surrounding heritage landmarks to the Werribee gorge river and Eynesbury’s very own majestic waterfall. The natural aspects of Eynesbury continue with 50% of the community being green open space, including the 18-hole Eynesbury Golf course designed by golf legend Graham Marsh.
The state-of-the-art Eynesbury Primary school, kindergarten and childcare, together with the newly launched Sporting precinct set the tone for future amenities such as the Eynesbury Town Centre. The ever-growing Eynesbury is situated 40 mins west of Melbourne CBD, close to train stations, medical and health facilities, shops and entertainment in nearby Melton and Werribee.
As a location replete with attractive, newly built houses and dozens of educational, recreational, medical and public facilities at your disposal, Eynesbury is hard to beat.
Buying a first home vs investment property
Before getting started on buying your first home, consider specifically what you’re looking for. Some people will be looking for a home to live in, while others might seek to purchase an investment property. This choice may influence factors like the location, style and price of the house you decide on. Typically, people buy investment properties well after they’ve bought their first home when they are no longer renting or repaying large loans on houses in which they currently reside.
First home buyers checklist
Let’s go into some more detail, step-by-step, about what you’ll need to do when buying your first home.
Step one: document your income
Consider how much money you currently have available to spend on a home. In most cases, this will be a combination of your savings and your forecasted income over five, ten, twenty or even thirty years. It may involve just you, or you and your partner’s combined savings and income.
Documenting your income matters because it informs how much money you’ll need to borrow to buy the house. The vast majority of first home buyers will take out a loan to finance the house, with an average deposit of approximately 25% in Australia. So, if you’re buying a home valued at $400,000, you may need to spend at least $100,000 upfront before repaying the remaining $300,000 with interest to the lender. Think about whether you have any close family or friends who might be willing to act as guarantors on the loan repayment, should things go pear-shaped.
First homeowner grants, stamp duty concessions, new home guarantee and the first home super saver scheme are just a few of the financial assistance mechanisms which might be at your disposal during this time. Most of these are run through state or federal government departments.
Step two: document your expenses
Consider the upfront and ongoing costs of buying your first home. Initially, you’ll have to pay for stamp duty, a mortgage registration and transfer fee, as well as miscellaneous expenses including a real estate conveyancer, property inspections and moving fees. For home loan deposits of less than 20%, you’ll also have to pay for Lender’s Mortgage Insurance (LMI), which covers the lender if you’re unable to repay the loan.
Buying your first home comes with a few ongoing costs, too. We’ve already mentioned repayment of the loan with interest, which may take several decades. On top of that, other costs include council rates, utility costs, and any structural repairs that need to be addressed as time goes by. Renovations might also come into play as a large expense if you choose to undertake them.
Step three: secure pre-approval on your home loan
Once you’ve figured out how much money you have to spend and what your expenses will be, we would recommend securing pre-approval on your home loan. This is basically where lenders assess your finances and determine whether they would be willing to grant you a loan should you apply for one. It makes for a far stronger home application down the track, as real estate agents will see you as far more financially prepared and committed to buying.
Step four: find your first home
Here comes the fun part. Searching for a home can be an extremely enjoyable process, where you can imagine your new life and what it might look like. But do keep in mind that this process may take time.
Try finding an area which suits your needs. Proximity to work, schools, parents, friends and shops are key factors here. You might want to talk to a real estate agent to figure out the area’s growth rate and determine how much your home will be worth in a few years’ time. In terms of the house itself, think about whether you’d prefer older houses or newer properties. Older houses may have a certain charm, but they might also require more costly ongoing repairs than newer houses.
Start your new life at Eynesbury
Demand for Eynesbury is growing every day due to its fantastic amenities and proximity to two of Melbourne’s fastest-growing municipalities: Werribee and Melton. Our stunning, affordable homes are being bought by more and more young families who want to get involved in Melbourne’s best blossoming community. You can kickstart your next chapter by buying your first home here, too. Take a look at our website to find out more about the area and to see what’s available for purchase. Buying a first home can sometimes be daunting, but you’ll do it with confidence at Eynesbury.