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Buying your first home is a momentous occasion in your life. Whether you choose a pre-existing home, a new build on existing land or a house and land package, you will achieve one of life’s greatest accomplishments by purchasing your very own property.
Before you make any decisions about where you’re going to live or what type of house you want to own, you need to be confident that your finances can comfortably sustain the mortgage repayments and all the other costs of home ownership, including council rates and stamp duty. For most of us, affordability is one of the most important things to consider when buying your first home.
As prices for established houses continue to rise, house and land packages or building on an existing block of land are increasingly attractive to those wanting to get onto the property ladder.
Outlying areas of Sydney are growing at an exponential rate as they strive to keep up with the demand for new housing. This means an ever-increasing number of opportunities for first home buyers are coming onto the market as more land releases and new developments are announced.
Important Things to Consider When Buying a First Home
When buying or building your first home, there are a number of factors to consider, which will help you choose, finance and move into the perfect house for your needs. These first home buying considerations relate to both the property itself, as well as financial and legal issues that may need to be addressed prior to settlement.
Financial Considerations
Buying your first home is one of the most important financial decisions you will ever make. Before signing on the dotted line, it’s important to review your financial situation and ensure that you are adequately prepared for a commitment as large as buying your first property.
- Budget and financing options: While it isn’t the most exciting topic, the benefits of budgeting will pay dividends when you purchase your first home. Effective money management may lead to quicker mortgage approvals and more favourable interest rates.
- Home affordability: The home you purchase should fit comfortably into your life. While it may be tempting to stretch your budget further, doing so may negatively impact your finances later in your ownership period, especially if your mortgage interest rate fluctuates drastically.
- Financial assistance: State governments offer a variety of incentives to allow first home buyers to take their first steps onto the property ladder. In NSW, for instance, you can take out voluntary super contributions and put them towards a home deposit.
Property Considerations
Given the financial commitment that buying your first property represents, it’s important that the house itself feels right for you. The ability to customise property features to suit your personal style is one of the top reasons to build your new home, but you can always get lucky and find an existing layout that you fall in love with.
- Location and neighbourhood: The location of your home is one of the only features that you cannot change. When searching for a property, be sure to focus your search on neighbourhoods that appeal to you and suit your lifestyle.
- Home type and condition: Similarly, certain property types may appeal to you. Use these parameters to narrow your search to focus on the exact type of property you want to own.
- Home features: While the features inside your home can usually be modified after you purchase it, you may be drawn to certain inclusions of a particular house. Large backyards, swimming pools and ample storage space, for example, are all features that may draw you towards a particular house.
Professional and Legal Considerations
Legal factors round out the list of things to consider when buying your first home. There are a number of different items to factor into your decision here, which can add to the total cost of purchasing your first home.
- Home builder reputation: If you are building your first home, choosing a reputable home builder is crucial. Eden Brae has decades of experience building homes of all shapes and sizes, with several prestigious industry awards to commend our work.
- Council and developer guidelines: While you may imagine that changes in council guidelines only apply to houses that you build yourself, new regulations may have been implemented since an existing property was last sold. Depending on their severity, they may order the demolition of existing structures or place restrictions on what can be built in the future.
- Clauses in the contract of sale: Clauses may be hidden in the sales contract, protecting the purchaser in the event their finance application falls through, or subjecting the buyer to penalties if settlement does not occur on time. It’s important to have your solicitor review the contract thoroughly prior to purchasing a property, to assess whether or not any of these conditions apply to you.
Know What to Consider When Buying Your First Home
As Sydney’s urban spread continues and improved roads and train services make living in outer suburbs more viable, first home buyers are experiencing an increasing number of house and land packages from which to choose. However, building with one of these packages involves a number of other first home buying considerations. Just like seeking financial advice, it’s really important to do your homework and make sure you choose a reputable builder with a demonstrably strong record for building top quality homes. Make sure you check how long they’ve been in the industry, visit their display homes, and look carefully at the guarantees they offer.
You can build with 100 percent confidence when you build with award-winning Eden Brae. That’s because we offer an unbeatable Buildsure Guarantee incorporating an 18-month fixed price lockdown and a fixed price contract. Combined with our completely independent 4-Star iCIRT rating, this means you get to enjoy the peace of mind that comes from our smooth and hassle-free build process. Most importantly, when you choose Eden Brae you can be sure that building your new home will be the exciting experience it’s meant to be.
To find out more about what to consider when buying your first home, or to book an appointment to visit one of our Sydney-based display home villages, please contact Eden Brae’s award-winning team today.