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  1. #1
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    Default Buying our first home

    We've recently managed to be a position where we can now afford to buy our first home. We have a 20% deposit and want tot start looking once we have sorted out financing. Was just looking for some general advice.
    - what should we be looking for/focussing on in terms of mortgages?
    - what other fees are payable in Victoria?
    - what are key things we should be looking for/at when viewing houses?

    Any help would be greatly appreciated!

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    Yay! Stamp duty will add a fair amount to your purchase price there will also be lawyers/conveyancer fees etc. I think a few of the banks have buying cost calculators.

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    Get a mortgage broker, they honestly get you the best deal, and the commissions come from the banks.

    Theres soooo many different loans and structures, its a minefield.

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    LaDiDah  (14-01-2014)

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    Also, the bank paperwork left 1 letter out of my surname and settlement nearly didnt happen but my broker charged on in and said since it was their error, they can fix it up later.

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    LaDiDah  (14-01-2014)

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    Buying a house is not an easy decision.The most important thing required first is to have already established budget.When you are buying home through mortgage the decision becomes more tougher.The mortgage should be in a manner where you can have a good interest rate,mortgage should be interchangeable.The best thing to do is you should learn more details about mortgage through a professional mortgage broker and then take steps accordingly.
    Last edited by deborahmartin; 04-02-2014 at 15:20.

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    Work out how much you can honestly afford to pay each month on a mortgage, making sure you leave yourselves a bit of wiggle room, and see what you can get for that. I found that the difference between repayment calculators and "borrowing capacity" was vastly different. Some places were offering to lend us over double what we worked out we could comfortably afford!

    It's highly unusual that your first home purchase will be your last. It's fine to stay in a place for a good while and build up the equity for your next home purchase, but don't fall into the trap of thinking you must have everything you want in your first home, because you won't be there forever.

    We ended up building, but for a good while before that we were looking at established houses. We literally wrote out a list of what we considered "essential", what was "desirable" and "dream". Each house we looked at had to have everything on the essential list, and got extra points for ticking off features in the other sections.

    I would also highly recommend staying away from any "renovators delights" for your first home. A lot of people would like to take up a project like that at some stage, but they are notorious for eating up more money than you ever imagined at the outset, and unless you have plenty of spare cash laying around, generally not the best choice for a first home owner.

    Older homes that do require a bit of maintenance around the place generally aren't too bad though. If you are really serious about a particular house, set some money aside to hire a private building inspector to take a look for you. They will identify things which may cause issues or require work in the near future, which can put you in a really good spot for negotiating a lower price with the current owners - just make sure you think about putting the "savings" aside to deal with the problem when it occurs, or do preventative maintenance!

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    LaDiDah  (03-02-2014)

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    The advice we got was to work out if we could continue to pay our mortgage if the rates went high. Don't buy a house that you can only just afford the mortgage on. And also don't listen to the number the banks give you of what you can borrow as this is way higher than what you can actually afford. I was amazed when we were told we could borrow something like $750,000. We ended up buying a place that was $415,000 and it has good resale value plus also good potential as an investment property (which is our aim). If we had borrowed too much we would be seriously struggling, and I think that's where people have been caught out. They only take into consideration your incomes and main bills - they don't count things like groceries, savings, general shopping etc.

    ETA: we had a deposit of around 10%, so what we borrowed was less than half of what they would have given us.
    Last edited by M'LadyEm; 03-02-2014 at 18:36.

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    Once you have your budget then become an expert in the area you are looking in - go to all the open house inspections, get lists of recent sales, attend all local auctions and make friends with all the agents! Then when you do find a house you like you will know what its worth in today's market and can offer accordingly

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    Congrats!!

    We qualified to borrow $400k + when we applied last year instead we borrowed $185k. I have no idea what we would have done if we did!! I stress over our bills now (mainly because we live a great lifestyle).

    Think how much you spend out,petrol, clothes everything!!!!

    Sent from my GT-I9195T using The Bub Hub mobile app


 

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