If you’re considering to buy a home for the first time ever, you should do due diligence before paying for the home. The last thing you’d want is saving up for a new home only to end up making the wrong choice. We’ve prepared this detailed guide to assist you in making a more informed decision when looking for a new home.
Currently, the world economy is not in its best status. Although that translates to hard economic times for most people, it would be your best chance to purchase a new home or land. Let’s look at some of the reasons why this period is the best moment for first time home buyers.
1. Cheaper Land
In case you’ve already saved up for the deposit, this may be the best opportunity to buy land. You can take advantage of the current economic challenges to get fantastic deals on land.
Tighter investment and financing conditions, current poor economic climate, rising unemployment rate, and changes in the market conditions are pushing many landowners to sell off their land instead of building new homes.
Thus, this moment presents perfect opportunities to get prime land on sale at affordable prices. In case you’re planning to build a new home from scratch, this might be the best moment to get the best deal.
2. Less Competition Among Investors
Considering the lack of investors’ confidence in today’s market, several investors are stepping back from purchasing land and homes. As a result, you won’t have many investors to compete with in the real estate market.
Essentially, most first-time home buyers and investors prefer buying land or homes in prime locations. Thus, there’s a lot of competition that makes the prices shoot up.
Currently, the worrying economic environment has made most investors back off, meaning that you can buy a home or land in a prime location without much competition. As a result, you’re more likely to get the property of your dreams at a more affordable price.
3. More Support from the Government
The government has been at the forefront of implementing policies that encourage first-time home or land buyers to make purchases at this tough economic time. There are several rebates, grants, and benefits that first-time homeowners will enjoy.
For instance, those in the middle and lower-income will buy a home at a lower deposit. Also, loan conditions for first-time homeowners have been improved.
However, not every buyer may be eligible for government assistance schemes, benefits, and grants. You should check whether you’re eligible to participate in a specific scheme before planning to buy a new home.
How to Buy Your First Home in Sydney
If you’ve made up your mind to buy your first-ever home, and you’ve set up a budget for the purchase, it’s now time to start hunting for a potential home. Here are the steps you should follow to make a more informed decision.
Step #1: Researching the Ideal Location
The location of a home is extremely important. Although you want a home that looks good, don’t forget that its location matters. Also, you can consider a land and home package to make the process easier, but make sure you focus on all the important details such as the kind of bathroom or kitchen you want, or how the landscape looks like.
When researching on the best location, establish whether private home sales or auctions are more popular in the preferred location. That way, you’ll be ready for either method and you’ll have known your responsibilities and rights under each home buying method. In case you’re buying a greenfield land, also known as undeveloped land, then it’ll be sold as private property but through a land developer.
Step #2: Choosing Reputable Service Providers
There are several service providers you’ll work with during the land or home purchasing process. Thus, you need to research and make decisions on various service providers including:
- The financial advisor, buyer’s agent, or mortgage broker you’ll use
- The kind of loan to procure, including the lender’s fees and rates
- The conveyancer or solicitor to use
- The home builder you’ll hire if you want to purchase titled land
Step #3: Preparing the Paperwork
Upon choosing a land or home, you should prepare the required paperwork for a successful land or home sale. Generally, you require to do the following:
- Gather the documentation needed for loan application if you need one. Make an application for a loan and have it pre-approved. You’ll need documents such as identification documents, tax return certificates or payslips to prove you can pay the mortgage, statements of your savings account, and documents that can prove you have set aside savings for the deposit.
- If you prefer buying a home from an auction, arrange for a loan and have it pre-approved before the auction. When buying from an auction, it’ll be difficult to sign a sale contract that’s subject to financing through a loan without having an agreement from the vendor.
- Ensure your deposit for the home is ready and understand your rights.
Your financial advisor or conveyancer should advise you about any other required documentation and rights depending on the specific circumstances. They should take you through the entire process as it might be a bit complex for a first-time homebuyer.
Step #4: Purchasing the Land
Basically, offers are written to the land agent to avoid any confusion regarding the conditions on the offer. The conditions may vary based on the kind of land you’re purchasing. If the land is a greenfield, you’ll purchase it through a direct sale.
On the contrary, if the land is vacant and situated in an already existing neighborhood, you’re likely to purchase it through auction. Ensure you’re ready for either purchase method.
Go through the contract carefully during the negotiation. Seek help from your conveyancer or legal practitioner to check whether all the documentations are in order, including the contract and vendor’s statement among other documentation.
Once you’ve gone through the documentation, you’ll need to do the following:
- Arrange for the deposit upon exchanging the contracts
- Agree on a suitable settlement period
- Gather the needed documentation
Next, you’ll do the following:
- Make a deposit for the new home
- Finalize the loan contract for the home with your chosen lender
- Get insurance cover for the mortgage (if needed)
- Consider getting insurance cover for income protection to assist you in making repayments in case of a job loss or illness
- If you’re currently living in a rented home or apartment, give your landlord a written notice to vacate
Every homebuyer has their own needs. Thus, it’s advisable to talk to your conveyancer or financial advisor to make sure you’re doing the right thing.
Step #5: Completing your Settlement
You can now complete the pending settlement. Once done, go ahead and build the home of your dreams.
Basically, the last steps to complete the pending settlement include:
- Paying fees for the land transfer and stamp duty
- Finalizing the property settlement
- Signing your loan contract
- Getting the title deed and other necessary documentation
Why Build Your Home With Clarence Homes?
Clarence Homes is an experienced home builder in Sydney. Thus, we know everything it takes to get you the best first home. We’ll ensure you get a stress-free, seamless, and simple experience when building your first home. Our sales representatives are ready to take you through every step.
Also, we do have a huge collection of land and house packages to make the choosing process easier for you. The available options are suited to different profiles, block sizes, and architectural designs to impress the needs of different home buyers.
With the numerous options available, you can rest assured knowing that you’ll find the right home for your needs. Contact us today to get your dream home.