Professionals Yarra Valley
2460 Warburton Hwy Yarra Junction
03 5967 1800
03 5967 1466Contact us
Deciding to become a first time home owner is an exciting one, but also one that comes with a lot of questions and perhaps some apprehension. Starting off by getting the right answers to the most common first time home owners buyers questions will help to relieve this apprehension.
What will be my financial obligations?
You should plan on having at the very least a 10% deposit, and then enough funds to cover costs like the stamp duty, building inspection and the legal fees. Ideally you will want to have 20% of the purchase price to put down on your new purchase. Without the 20% many lending institutions will want you to pay for mortgage insurance, which is an additional cost for you.
It this the right time to buy?
You may be wondering if you should wait a little longer to buy so you can save up more for the down payment. What you have to factor in here is, what are the interest rates at now, and what is the housing market doing? If the rates are low and the market is good then this may not be the case if you wait.
What is the best location?
The location has to be one that best suits you. Consider the amenities of the area, and the ease of travel when making your decision. The Upper Yarra Valley is one of the best places in outer Melbourne to purchase as a first home buyer. Not only are prices affordable, but there is also access to transport, shops, medical facilities and schools.
Is this suburb best for you?
You may feel that you really like a certain suburb but what do you really know about it? Do some research starting by checking it out online. Then attend some home inspections for homes that are on the market in the suburb that appeals to you. Talk to one of our agents and ask a lot of questions, we’re more than happy to answer & listen! Don’t just get caught up in the décor of the house, but pay attention to the traffic flow, the amount of construction that is going on, and what kind of amenities are easily accessed. By following this format for each home inspection you attend you will begin to familiarize yourself with the area, which will help with your decision making.
Is this property worth the asking price?
You may really like a certain home but you are not sure if it worth what it is being sold for. Check out similar properties in the area and see what they sold for. You can go to online real estate sites and check out their sold section for the area you are interested in.
Is a building inspection really necessary?
This will depend on your level of expertise for being able to assess structural components, electrical and plumbing and other building issues. If you are not an expert in any of these areas then you are far better off to rely on the home assessment of the experts who are. There are many potential problems that can be present but go unseen to the untrained eye.
Should I go into partnership with someone to buy a home?
You would need to choose your partner carefully and establish the right ownership relationship. You should work out all of the details before making the actual purchase so each partner knows what is expected of them. An agreement based on this should be legally prepared by a solicitor to ensure that your purchase is made as tenants in common and not joint tenants.
These few answers to the common first home buyer questions can act as your starting point in becoming comfortable with a first time home purchase.