New year, new home

The start of a new year is when resolutions get made and goals are set. If buying your first home is part of the plan for this year, it’s never too early to start preparing for what is one of the biggest and most exciting purchases you’ll ever make.

You can never know too much when it comes to buying property, especially for the first time. A solid understanding of the local property market and how it’s performing will ensure you make sound decisions around where and what to buy.

Speak to a number of REIWA agents in the areas you’re looking at as they’ll be best placed to update you on what’s happening locally. There’s also plenty of information available online but stick to reputable sites, like reiwa.com, for up-to-date and relevant information including market prices, sale prices, growth rates and suburb profiles.

Be sure to put yourself in the best possible financial position prior to taking the plunge into the property market. You’ll need to have a solid savings plan in place so you can build a substantial deposit. The more you accumulate for your deposit, the less you’ll need to borrow so aim to save around 10 to 20 per cent of your expectant purchase price.

Very few people are in a position to purchase their first home outright. Before you start your property search, find out how much you’ll be able to borrow as it’s dependant on a number of factors including income, debts, existing financial commitments, credit history, loan type, employment history, savings and assets.

Be realistic and practical when determining your loan amount as you don’t want to be living outside your means. I suggest paying no more than 30 per cent of your gross monthly income on your monthly mortgage repayments.

Consider applying for pre-approval of your home loan. This way, you’ll have a much clearer idea of which properties you can afford and be more confident when making an offer on the one you want. Also, be mindful that the price of the property isn’t the only cost you’ll be up for. There are a number of taxes and fees associated with buying a new home so factor these in too.

When you start the property search, be sure to think ahead. You might be living in this home for a number of years to come so consider if the property caters for the possibility of a growing family, buying a pet or renovating.

For more information, make sure to check out our WA first home buyers guide.

Good luck and enjoy stepping into home ownership!