Buying or building your first home is one of life’s major milestones, but often entails challenges such as navigating high property prices, saving for a deposit, and meeting eligibility criteria for home loans. Government grants and schemes aimed at easing the financial burden can play a crucial role.
First home buyers must also contend with market competition, hidden costs, and the intricacies of property transactions. The process demands informed decision-making, careful budgeting, and often involves seeking professional guidance to ensure a successful entry into the property market.
We consider our customers, past, present and future to be one of our most valuable resources when it comes to honest feedback around current market conditions, their experiences building with Thompson Sustainable Homes, and dealing with other builders, challenges, frustrations and fears they’ve confronted along their first-home buyer journey.
Our New Home Specialists are often in conversations with the community, answering questions, giving expert advise as well as providing clarity and guidance when navigating building your first home.
In this article we address some our customers insights and establish some key factors to consider as you travel towards your new home.
4 tips on how to save for your first home
Rising Property Prices
One of the most common challenges for first home buyers is the increasing cost of properties. High demand, limited housing supply, and factors such as population growth can contribute to rising property prices, making it harder for first-time buyers to enter the market.
Saving for a Deposit
Accumulating a sufficient deposit for a home loan can be a significant hurdle for first home buyers. Lenders typically require a minimum deposit as a percentage of the property’s purchase price, and in high-cost markets, this can be a substantial amount.
Loan Eligibility and Affordability
Meeting the eligibility criteria for a home loan and proving your ability to make repayments can be challenging. Lenders assess your income, expenses, credit history, and other financial factors to determine how much you can borrow. Affordability can become an issue if your income is not proportionate to the property prices in your desired location.
Government Grants and Schemes
While government grants and incentives for first home buyers can provide financial assistance, navigating the various programs and understanding their eligibility criteria can be confusing. These programs might change over time, so it’s crucial to stay updated on the latest offerings.
The real estate market in Queensland, like in many other places, can be competitive, especially in sought-after areas. Multiple buyers vying for the same property can lead to bidding wars, which may result in the property selling for a higher price than anticipated.
Understanding the real estate market, property values, and trends in different neighborhoods is essential for making informed decisions. Lack of market knowledge might lead to overpaying for a property or purchasing in an area that doesn’t align with your long-term goals.
Location and Lifestyle
Choosing the right location that suits your lifestyle, commute, and amenities can be a challenge. Balancing affordability with location preferences can be difficult, especially in areas with high demand.
Negotiating the purchase price and terms with sellers can be intimidating for first home buyers who may not have experience in real estate transactions. Developing negotiation skills can help ensure you get a fair deal.
Legal and Documentation Complexity
The legal aspects of property purchase involve contracts, titles, and other legal documentation. It’s important to have a clear understanding of these aspects or consult legal professionals to avoid potential pitfalls.
To overcome these challenges, it’s advisable to do thorough research, seek advice from experienced professionals, and consider working with a reputable business or service provider who specialises in helping first home buyers. Additionally, staying informed about changes in government policies, grants, and incentives can provide opportunities for financial assistance. Always consult with experts and relevant authorities to get the most accurate and current information for your specific situation.
Thompson Sustainable Homes has been a well respected and trusted builder for over 60+years. Helping Australians just like you, become home owners in a beautifully built and affordable new home.
Are you a first home buyer and want to know what Government Grants you’re eligible for? Where to start and what you can afford? KICKSTART your Home Ownership and hit the ground running! We’ve partnered with Mason Finance Group to answer any questions you may have, cut through the red tape and guide you to what options are available that best suit your circumstances and needs.
Tuesday 12th September 5.30pm – 7.30pm
Some drinks and nibbles provided.
Seats are strictly limited, so book your FREE seat now and start your journey to owning your first home!
This blog is dated 17 August 2023. It has been prepared by Thompson Sustainable Homes to provide general information and guidance on the HGS or FHBG to home buyers. Thompson Sustainable Homes is not a financial institution and we strongly advise that you contact your financial provider before making any decisions.