Buying your first home is an exciting milestone, but it can also feel overwhelming. Whether you're feeling ready to take the plunge or still unsure about where to begin, these 5 tips will help you navigate the process and make smart decisions. Here’s what every first-time buyer should know before purchasing their dream home.

1. Look beyond the price.

Price matters and having a clear idea about your budget is crucial for anyone who is looking for a place to call home. However, don’t focus all your energy on the cheapest option; focus on the best value you can get within your budget.

Not all streets in a neighbourhood are equally safe, pleasant, or easy to commute. An inconvenient location can undermine your home value and let you with a decision that you may regret.

TIP: A comparative analysis of similar houses sold in the area will give an idea about the real value of the property. Explore, do your research about the suburb’s future plans and consider the prices before placing your offer.

2. Have your finances organised

Having your loan pre-approved (not only pre-qualified) should be one of the first steps of house hunting. It is a common mistake to make assumptions regarding how much you can borrow. Some real estate agencies won’t even consider your offer without having your loan pre-approved. You may lose time looking for properties under or over your price range.

TIP: Independent brokers have access to a wide range of lenders and can help you find the best option. Online calculators are not accurate enough to predict how much you can really afford and should only be used as a guideline for rough estimation.

3. Ask yourself: will it be good in 10 years?

Today you work from home and you don’t have kids, so not having a school nearby or a train station is not a big issue. But, how about in 5 years? Or maybe 10? More than a place to live, a house is one of your biggest assets and significant appreciation does not come overnight. Once you buy your property, ideally, you should hold on to it for at least 7 to 10 years to see the value growth.

TIP: Set your requirements considering the long run. Do you plan to convert your home into an investment property? What are the council's plans for this area? Be sure you have these answers before you sign a contract.

 4. Your first home doesn’t need to be the last

There are plenty of emotions involved in buying a home, but you should always keep in mind the logical side of it. It is common to fall in love with properties that are over your budget or spend too much on upgrades that won’t add value to the property. For example: converting 2 bedrooms in a massive master bedroom can seem reasonable, but are you ready to lose thousands of dollars on the resale price?

TIP: Don’t overspend. Your first home doesn’t need to have all the bells and whistles. Focus on what you need and, as you progress in life, you can safely upgrade in terms of finances.

5. Don’t wait for the market.

The real estate market works in cycles. As with other investments, the real estate market goes through its own share of ups and downs but in the long run it always continues to grow in value. This is evident from the data which shows that houses in Australia have seen a growth of 412% over the last 25 years, according to the Aussie/CoreLogic 25 Years of Housing Trends report.

TIP: Don’t wait to buy real estate, buy real estate and wait.

TEAM SONI CAN HELP

Buying your first property can be overwhelming, but you don’t need to figure it out all alone.

At SONI, we have helped a number of first-home buyers in successfully acquire their first property and can help you find the right property that fits your needs.

We have access to homes across Melbourne which are suitable for HomeBuilders Grant, First Home Buyers Grant, First Home Loan Deposit Scheme and Stamp duty concessions.

Our team of experts will also help you organise finance and conveyancing, mediating the whole process for construction up until you get the keys.

If you want to know more, book a private no - obligation meeting with our team today.