1.Buy When YOU are ready!.
This will probably be the biggest financial commitment you will have been faced with at this stage of your life. Make sure you are psychologically ready. Don’t be pressured. Don,t buy because others tell you the time is right to enter the market. Be totally comfortable.
2. Think outside the Box.
If you are unable to afford to buy in the area of your choice. You may need to scale down the size of the home, find a larger place in a different suburb or a smaller place in a prefered suburb.
3. Look at your first purchase as stepping stone.
Your first property may not be your ideal choice but look at the big picture. In five years time, sell up and buy somewhere more desirable using the financial gain from the increase in value. (Hopefully the economy improves by then).
4. Do NOT borrow more than you can afford.
It is not just the price of the property that is in question here. That’s is only the first cost. The next cost is legal fees, bank fee’s, transaction fees, not to mention the property upkeep, and household costs. Keep the loan repayments within your means.
5. There is always another bargain around the corner.
If you miss out on a property that is great value and really tugged at you heart and feeling a little deflated. Ask any real estate agent and they will tell you there will be another property come on the market within a short time that will fit your criteria and your budget equally.
6. Don’t pay too much.
Never pay more than what the property is worth. Do your own research and understand how much similar properties in the area are selling for.
7. Keep control of your emotions.
Do not fall in love with a property that is out of reach financially, and you feel you must have it. Big mistake. Often you will overlook much-needed repairs because it is so cute and so loveable. It may need thousands of dollars of work done on it. Get a building inspector to look the place over before you make a decision. Take a friend that you know will give you an honest opinion to look at the property.
8. Be sceptical of the selling agent.
The best real estate agent will spin you the best yarn about the property. Remember they have to put food on the table and will want to make a sale to do so. It is the salesperson legal obligation to sell the property for the highest price possible. If you were selling you would expect nothing less.
9. Put a hold on the renovations.
Very tempting I know, I have been there. Hold off, don’t rush in. Give yourself time to live in the place before you attempt to make changes. Keep hold of your spare cash, if you are lucky to have some, till you are sure of what renovations you want to do. This will also help you to prioritize the work you want to do.
10. There will be light at the end of the tunnel.
Your mortgage will feel like a huge weight around your neck for the first couple of years. You will probably have to deny yourselves some treats just so you can make the payments. If you plan carefully and make those small sacrifices, after a few years more positive things begin to happen and you will be grateful for your prize possesion.