If you ever decide to purchase an established home, the entire amount of the loan will be drawn to pay for the property as soon as the contract is signed. You simply have to make monthly repayments until the loan is fully paid off.
If you opt to build a property, however, as in the case of house and land packages, this kind of setup is considered less than ideal. Amongst other things, you will have to pay for the loan on the finished property even though it is still under construction. To avoid having to pay a high interest rate, you might want to obtain a construction loan.
First home buyers are widely perceived to be people in their mid to late 20s. However, that conception may need to be re-evaluated, considering that surveys from 2011 onwards have shown that an increasing number of Australian first home buyers are well over their 30s. More recently, a report by realestaview.com.au uncovered that over 60 percent of first home buyers are now aged between 30 and 49 years old.
Some industry groups and analysts have attributed the trend to more people saving for longer and purchasing later in life when they are in a better financial position. This theory appears to coincide with the reasons given by those surveyed: Financial security via the property ladder was the greatest motivator for most first time buyers.
When it comes to stepping on the property ladder, it’s important to start off on the right foot. First home buyers in Perth may find the latest real estate market reports, industry news, and expert tips frankly confusing. Yet certain pieces of advice have real merit and will genuinely help you secure a home.
Avoid these common slipups so you can step up with confidence on the property ladder very soon.
Losing Sight of Your Goals, Straying from Your Priorities
First, determine your goals and set priorities. Write down everything you want to see in the home you are building, and make it a priority to save for a deposit. Along the way, you may have to cut down on your leisure travel, luxuries, and other non-essential spending so you can reach your goals on time (or even earlier than expected).