Our Step By Step Guide for First Home Buyers
The prospect of buying a new home is an exciting time for first home buyers. However, with the rising prices of Sydney properties particularly in the increasingly sought-after Inner West region, it has been difficult for most first home buyers to enter the market. Currently, Sydney has some of the most expensive property prices in the world, with the current median house price averaging at $1.3 million. Just as we’ve been for the last 50 years, Richardson & Wrench are there for your journey, right from the very start and through the challenging times. In this article, we provide you with a guide for your journey of purchasing your first home here in Sydney.
Figure Out Your Budget
The first step for your journey of purchasing your home is to take a hard, long look at your finances. No matter what type of house you are going to buy, you are going to need to start saving up for a deposit. Furthermore, you need to consider how much you will need to repay in the future, so you need to carefully figure out your income and expenses and your cash flow.
Moreover do not forget to include other hidden costs that you may incur in your journey of buying your first home into your budget. Costs like stamp duty, legal fees, registration of title deed fees, and lenders' mortgage insurance fees are just some of the hidden costs that may end up incurring when purchasing your first home.
Figure Out How Much You Can Afford
The next part of your purchasing journey is to figure out how much you can afford. Your income and expenses will usually how much you can borrow. You must figure out how much borrowing power you have so you do not waste your time looking at properties you cannot afford.
Highly consider getting a pre-approval from a lender. While a pre-approval does not commit you to a loan, it does show you are eligible to apply for a loan for up to a specific amount, and it proves to sellers that you are serious about purchasing a home.
Take Advantage of the First Home Owner Grant & First Home Buyer Assistance Scheme
Securing the First Home Owner’s Grant is a great start for your journey in owning your first home in Sydney. First homeowners in New South Wales can qualify for this grant which is worth $10,000 on new properties, as well as a rebuilt or significantly renovated home. First home buyers in NSW no longer have to pay stamp duty on both new and existing homes worth up to $650,000, and new homes up to $800,000. Stamp duty discounts will also apply to properties between $650,000 and $800,000 as part of a major housing affordability package announced by NSW Government on June 1st, 2017. There are plenty of resources available for more information regarding these legislations, so make sure to head to the NSW Government Revenue website.
Now it’s time to find your home
This is the best part of your journey - searching for your new home! If you’re interested in officially owning a part of The Inner West, register for Richardson & Wrench Property Alerts so you can have first access to viewing our properties as soon as they’re listed.
Don’t forget our award-winning Richardson & Wrench agents are there for you every step of the way to find you the perfect property. With over 50 years of real estate success, our agents are ready to help you find the home for your family to grow and create lifelong memories in. Contact us today to see how we can start your journey to finding the perfect first home.