Common challenges with first home buying

Written by view.com.au in Buying on July 18, 2016

Common challenges with first home buying

Owning your own home is considered the great Australian dream for many people. However, the process Aussies go through to reach this dream isn’t all that varied. Saving a deposit, searching through hundreds of properties, visiting open inspections and auctions, going through some form of rejection and then ultimately ending up with their first home. It may not be the Taj Mahal but it is yours.

At realestateVIEW.com.au, we recently spoke with Richmond FC’s full forward, Jack Riewoldt who talked about buying his first home in Melbourne. Sure, he is a Superstar AFL Player, however he confessed that he didn’t know too much about the property market at the time.  Stating that with “having no real property knowledge, I was going in blindfolded like a lot of first home buyers are.”

We all face the same challenges as first home buyers. Sometimes just knowing you’re not alone and where to look for advice is all the help you need.

Sacrificing lifestyle

So you’ve decided you are ready to buy a house. First things first, you need to save some cash. A lot of young home buyers struggle with giving up something in their life to save money for a deposit. Nice dinners out with friends may become dinner parties at home.

This step can take dedication to your saving goals but doesn’t mean you need to live as a hermit. Talk to your bank about opening a high interest savings account. Assess where your money is really spent and how you can cut some unnecessary costs out.

Affordability

Affordability is possibly the biggest issue first home buyers face. You’ve got your deposit but this is really only the first step. A lot of first home buyers start by looking in the areas they want to live in rather than the areas they can afford to live in which can draw out the process.

Start by researching the median housing prices in each suburb, attending a few auctions and budgeting your finances to really determine your housing budget. This will give you realistic goals when saving.

Knowledge of the property market

The property game is a complex and ever changing market. First time buyers may feel a little out of their depth, even AFL stars. Jack Riewoldt stated “if I had my time again, I would have probably waited around and watched the market a little bit more but it was so exciting getting into the property game that I jumped on the opportunity.”

“The thing that I’ve learnt the most is the more homework you can do and the more background and research you can do on these online sites like realestateVIEW.com.au, it just gives you a better picture of what is out there in the market.”

Speak to the professionals. A buyer’s agent or real estate agent can help you assess the market and provide you with the information you need to make an informed choice on your first home.

Knowledge of the process

Now your finances are sorted. You’ve done your research and have the property market down pat. You know exactly where you want to buy. But what happens next. How do you bid successfully at auction? If you win, what happens next? When can you move in?

Understanding the ins and outs can give you the best chance at having the a smooth buying process, although you may face some issues out of your control. Expert advice is the best way to get this understanding. Our Ultimate First Home Buyers Guide has all the information you need, prepared by those in the know FOR FREE! Or if you are willing to pay for some professional advice, you could visit a buyer’s agent can walk you through the entire process.