REIF Guide To Buying Your First Home
Becoming a first home owner is an exciting stage in anyone's life. It provides you with a new sense of independence and security. You earn more privileges that you don't necessarily get if you're renting. We are seeing an increasing number of clients who are ready to build their first home, as the market is HOT right NOW! The Federal and State Government's are currently offering, never before seen incentives and savings to assist first home buyers with getting into the market.
If you're considering building your dream home, we've created a quick step-by-step guide to the buying process. In this article we share our 11-step journey that we will take first home buyers through when they build property with us!
Step 1 - "Before anything, preparation is key to success"
Yes, planning. This is key to any success that you'll want to achieve as a first home owner.
Do you know what it is that you want to achieve?
Buying a home is a long game that you want to be prepared for; both, financially and mentally. Setting your goals and key milestones will be the greatest tool you can leverage during the process of home ownership. So, it's important to consider three key questions and be able to answer them. They are;
What do you want to achieve?
Why do you want to achieve it? (Will it benefit you?)
How are you going to achieve it?
If you can answer these, you're ready to move onto the next steps....
Step 2 - "Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver"
There are many costs to consider when you are ready to build your first home. These include; upfront costs, government fees, mortgage loans and expenses/ ongoing costs.
As a first home owner, understanding your current finances and any incentives/ government stimulus packages that you're applicable for will work in your favour. You can find this information on your State Government website and your current banking institution.
Steps 3 and 4 - Establish Your Capacity/ Choosing The Right Loan and Lender
When establishing your capacity, you need to choose the right loan and lender for your mortgage needs. That's when you should consider consulting a qualified broker to assist you with this process.
Here at REIF, we have a team of highly qualified mortgage brokers who are able to assist you with determining these factors. They will also work with you to determine your costs and the affordability of you being able to purchase your first home. From our panel of 25 lenders, a REIF mortgage broker will find you the most competitive interest rate and mortgage repayments for your individual situation. This is because they don't work for the banks, therefore they only have YOUR best interests at heart!
Step 5 - Operation Dream Home
This is probably the second most exciting process in your journey to becoming a first home buyer (after moving in). Our property specialists will be able to assist you in sourcing a full turn key property. With access to 10,000 + properties, nationally, our specialists will work with you to determine the important factors that you may want for your dream home.
These factors may include:
land location/ size;
house type (traditional house and land, units or townhouses);
fixtures and fittings;
internal and external inclusions;
location (close to schools, transport, amenities, and retail offerings);
local infrastructure and jobs;
capital growth; and/or
supply and demand
Steps 6, 7, 8 - Assess and Inspect / Make an Offer / Sign and Exchange Contracts
Decided on your dream home?
Before you move forward with signing any contracts, you will need to organise a building and pest or strata inspection. This will ensure that your property will not encounter any structural or pest related issues. Once the inspection is completed and you've got the all clear, you may be ready to make an offer.
When you're ready to take this step, REIF will negotiate with land developers and builders to get you the best price on your dream home. We will ensure that you're only signing a fixed price full turnkey package so that you don't encounter any surprise costs along the way.
Once you're satisfied, you may be ready to sign and exchange contacts. REIF will organise all the paperwork and documentations for you to review. We will sit down and explain the contracts in full detail. Then you will get to work with a solicitor to review these contracts. If needed we will make adjustments if necessary and all you need to do is sign off and put down a deposit.
Step 9 - Cool-Off Period
After your sign and exchange contracts you have a few days to change your mind about your purchase. If you do decide to back out on your decision, this is the time to do it. Though, it's important to be aware that you may forfeit some of your deposit.
Step 10 - Settle & Celebrate
The next step in the journey to buying your first home is settlement. This must occur before building construction takes place. Settlement occurs four to six weeks after contract signing. Then the building construction will take place. This is usually a five month process, depending on the builder and potential environmental conditions.
Once the build construction is near completion you get to inspect the property. This step is called practical completion. You can look at the property to determine if there are any defaults within your build. The builders have up to two weeks to fix these defaults, ready for your keys to be handed over to you.
Step 11 - "New Beginnings, New Memories, New Home"
All your hard work has finally paid off! You are ready to move into your new home. This is when the keys to your property are officially handed over to you and you get to enjoy your dream home!
To Learn More
If you are interested in learning more about the process of building your first home with Real Estate Investment Finance check out our FREE eBook, Guide To Buying Your First Home!
Furthermore, if you'd like to express your interest in a property or reviewing your borrowing capacity to purchase your first home, we would love to help!
Our contact details are listed below!
Ph: 1300 130 932