Buying a home is a really big deal, so make sure that you know what you are getting into. It is best to do some background research to determine what your level of affordability is. You also may be interested in getting some professional legal and financial advice. A few other things to consider when you are looking at buying your first home:

• Figure out how much money you can afford to spend on a house and don’t go above that figure. Borrowing more money than you can afford is a very bad idea.

• Take into consideration interest rate fluctuations and plan accordingly

• If you don’t understand what a fee or charge is ask. Don’t be intimidated by all the paperwork and legalese. This is your home. If anything confuses you make sure it gets cleared up to your satisfaction.

• Make sure that you can afford your monthly repayment bill.

• If you have extra money it is always a good idea to pay it toward your repayment balance.

• Always pay your payments on time.

• Be diligent in checking for hidden fees such as legals and stamp duty fees.

You May Be Eligible For The First Home Owner Grant

The government has instituted a program that gives first time home buyers a $7000 credit to help get them into their new home. There are some stipulations that apply to the First Home Owner Grant (FHOG) such as:

You must be an Australian citizen or a permanent resident or be building your first home in Australia
The property must be a recognized house, home unit or flat specifically designed for people to live in.
If you’ve already taken the grant you may not use it again.

You must occupy the home within 12 months of purchase settlement or building completion.
Application for the FHOG has to be made within 12 months of settlement or building completion.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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Buying your first home is a very big step, and one that should not be taken lightly. If you are currently looking to purchase your first piece of real estate in Australia you may go through many emotional and financial changes. Buying your first home doesn’t need to be a hassle or a nightmare. If it is done right, purchasing your first piece of real estate can be a very rewarding and pleasant experience. Here are a few tips to get you on your way.

Save Before You Buy

It is best to have some kind of a deposit saved up before you purchase a home. A good figure to shoot for is 5% of the purchase price of the property. If you don’t have that kind of money saved up for your deposit you can still buy a home. Some things you will want to do are:

• Track your expenses to determine where your money is going. A good way to do this is by writing down everything you spend money on for thirty days. Everything. Even a pack of gum should be written down. This will show you where your money is going and where you can reduce your spending and save more money

• Once you have determined where your money is going make up a budget and stick with it.

• Clear up any and all credit card debt as soon as possible to help your credit score. This will also help you to be able to afford your mortgage payments by not having credit card payments to make every month.

• Try to save as much money as you can by finding high interest savings accounts.

If you are able to show your financier that you have a history of savings, responsible repayment ethics and that you are serious about money matters than you will have an easier time when you go to get a mortgage loan for your new home.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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