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

If you enjoyed this post, make sure you subscribe to my RSS feed!