Tips for the first time Victorian home buyer

If you are a Victorian first time home buyer who is considering dipping your toe in the water to buy your first Bellarine Peninsula, Surf Coast or Greater Geelong home, these steps will help pave the way for a smooth purchase.

1/ Determine your budget

First, get your finances sorted. Before you even start to peak at houses you need to understand what your budget is and your ability to pay back the home loan. Find out how much you can borrow and how much your repayments will be. You should speak with a broker or banker to assist you with this, as each financial institution has slightly different requirements and expectations.

Overall, a good savings goal is 20% of the purchase price of the home plus enough to cover the upfront costs (legal fees, registration fees etc) of purchasing a home in Greater Geelong, the Bellarine Peninsula, or the Surf Coast. Some lenders only require a 5% deposit, however, a smaller deposit means a bigger loan and, not to mention, you will have to pay for lenders mortgage insurance. There are some initiatives available to first home buyers with low deposits, however you should speak with your broker to ensure there are no hidden catches that hinder your use of the property.

Research the upfront costs of purchasing a home in Victoria; the fees for lending, government fees, mortgage insurance fees, moving costs, etc. and include them in your budget to determine what your maximum house price budget is.

2/ Check if you qualify for home grants or concessions

There is a range of options for new Victorian home buyers. Take the time to get pre-approval and find out what you are eligible for as a new home buyer. The Victoria State Revenue Office has a complete list of all concessions and discounts for first time home buyers including:

• First Home Owner grant for new builds
• Stamp Duty exemption or concession
• Principal Place of Residence concession

3/ Research house prices

Now you have an idea of how much you can comfortably afford to pay for a home, now you need to research housing pricings in Geelong, the Bellarine Peninsula and Surf Coast regions to determine where and what type of home you can afford.

Consider your must-haves and nice-to-haves for your Geelong property

• ‘Must-haves’ (or things you can’t do without) could include: living in specific suburbs, nearby schools, number of bedrooms, amenities proximinity
• ‘nice-to-haves’ (or things you could do without for now) could include: high-end fittings, renovated rooms, landscaped outdoor space

As a first home buyer, focus on your must-haves to help you prioritise what matters most to you in a home. Your nice-to-have list can include things that you may do later to the home such as renovations, landscaping or adding a pool—they are things that the home may not have currently have.

Know your price range and stick with it

This is a tough one. If you’ve been pre-approved for $500,000, don’t waste time looking at properties advertised at $600,000. Moreover, if your ideal suburb is outside your price range, keep an open mind and look at nearby suburbs or similar suburbs which may have the type of amenities you are looking for.

4/ Find the best home loan rate

A home loan is a long-term debt, so make sure you find one that works for you. Compare at least two different lenders to obtain personalised home loan rates. After you have worked out which lender you want to use, consider getting a loan pre-approval from them. Pre-approval lasts for 3–6 months depending on the lender and outlines an affordable price range for you. A pre-approval doesn’t commit you to a loan, however it does show sellers you are serious about buying a home. Keep in mind that the best rate doesn’t always mean the best deal, this is why we recommend speaking with a broker as they will compare a variety of loans and find one that best suits your current needs and requirements as a first home buyer.

5/ Get some help!

Engaging the following service providers before you purchase a home will help you sort out your paperwork and ensure you can purchase the home of your dreams with no hiccups.

• buyer’s agent
• mortgage broker or financial adviser
• property lawyer conveyancer
• accredited building or pest inspectors to use if you need them

Trust the best Geelong property transfer experts

Purchasing a home is an exciting yet stressful time. At Cahill Rowe Conveyancing we aim to take some of the stress out of it by offering free no-obligation pre-purchase advice. Once you buy a home we will happily take care of the transfer of ownership and all other paperwork that needs to be taken care of. Engaging Geelong’s best conveyancing property lawyers will ensure you understand all your rights and obligations with the transaction.

Servicing Geelong, Ocean Grove, Barwon Heads, Torquay and the Greater Geelong, Bellarine Peninsula, Surf Coast regions, not to mention all of the state of Victoria, Cahill Rowe Conveyancing are the trusted property transfer experts for Victoria.

For a hassle-free conveyancing experience contact the best property conveyancing lawyers at Cahill Rowe Conveyancing on (03) 5292 1994.

Link to second December blog once it is posted.