First-Time Home Buyers Guide: Steps for buying

Buying a property is an extensive process that requires careful consideration at every step, naturally seeming daunting to most first-time home buyers. Unfortunately, the high stakes coupled with the pressure of having one chance to pick the right home tend to make matters more stressful.

First home buyers in Sydney benefit from a fast-growing market, with some estimates indicating a 24% growth in property value in the area in 2022. However, with the number of properties up for sale dropping every month, finding the right property has never been this challenging.

First-time home buyers need to understand all the steps involved before looking at the market and finding potential homes. You might be wondering about the location, loan, and from where to seek first home buyer assistance. 

We answer those questions and more in this first-time home buyers guide.

First-time home buyers guide: Steps for Buying

Here are six steps that will help you make a sensible and profitable purchase:

Set a budget 

It is vital to plan your expenses and set a budget before looking into your home loan options. In addition, you will need to save up for a deposit before considering a loan. Deposits typically stand at 10% of the property’s cost. 

Stamp duty is an important expense to factor into your budget since you may need to bear a high cost for it. Stamp duty is what the state government charges to purchase a property. 

Other expenses you must factor into your budget include mortgage establishing, valuation, and legal fees.

Don’t go over the budget as this may create difficulties later. Instead, closely evaluate your income, employment status, credit record, level of personal debt, and assets. You could apply for the First Home Owners Grant and relieve some financial pressure, granted you are eligible for it. 

Find a home loan provider

Shortlisting potential home loan providers is as simple as comparing key factors such as the rate of interest, features, and time period of the loan. You can choose to get a fixed, variable, or split loan, although some providers offer other types of loans.

You may apply for conditional approval, which will help you secure a property in case you stumble upon the right one at an auction. The banks offer conditional approval between 3 to 6 months. Once your loan is confirmed, you get relief from the finance part.

Begin house hunting 

Working out your budget will enable you to begin shortlisting properties. First, make a list of must-haves, noting down your preferences about the location of your future home, the size and style of the property, and the features you will not settle without. 

With this list handy and your preferences set, you can begin checking out dwellings, getting a feel for neighborhoods, and attending home inspections. 

Don’t be afraid to ask your home inspector any questions you may have about the condition of the home and any rules occupants may need to follow. The rules are crucial details you cannot miss discussing if you have pets, since some body corporates do not allow pets. 

Make an offer 

You may either purchase the property by auction or by any private treaty. But bear in mind that you cannot negotiate at auctions, and there is no cooling-off period. You must first visit some auctions to see how they work before deciding to participate. 

Regardless of how you purchase a property, it’s best to visit the property and inspect it. Ideally, you should inspect it before making an offer. However, you may inspect a property after making an offer. If the property is not what you expected, you can drop the deal. 

Draw up documents for the settlement procedure

Once you find a property you like, you can convert your conditional loan to formal loan approval. The loan providers will ask you to sign the documents in person, and some may also ask for your property insurance. 

After signing the contract, you enter a cooling-off period of about five days. It is now when you can change your mind about buying the property. This period is the right time to complete any stipulations or special conditions stated in the sale contract. Conditions to be met may include a thorough evaluation of the house and repair of the property by the owner. 

Before settlement day, arrange the following:

• Securing your lawyer’s signature on the Transfer of Ownership paperwork. 
• Setting up your funds to cover the remaining sum. 
• Arrange a time to give you the keys with the real estate broker.

On the settlement day, take your lawyer along to meet with the seller’s representative. When you buy a first home in Sydney, this settlement day will be the most exciting and exhilarating experience. 

Once the deal is done, the lawyer will contact you, and you can now take the keys to your new house. 

Finishing Up the Sale

When you get the keys to the place, all that’s left to do is move in. So here are some tasks you need to tackle when moving in:

• Ensure to accurately label all your boxes with the rooms they will be heading to when loading.
• If your home lacks a trash or recycling bin, arrange for one through the local authorities. 
• Arrange to have your furniture moved by a moving company. 
• Have the carpet cleaned by professionals.
• Before choosing a removal company, getting quotes from many businesses is advisable. Try not to skimp out on this expense and consider getting insurance for the moving process to protect your investments.
• Set up basic services including internet, power, gas, and water. 
• Update your address on all significant documents. 
• Buy home and contents insurance. 
• Reroute mail via Australia Post. 
• Identify the fuse box and transformer to prepare for emergencies.

Conclusion 

Owning a home is the best feeling you will ever have. As a first-time buyer in Sydney, it’s best to hire consultants to help you navigate the market and make a research-backed purchase that will appreciate. 
Let Quarter Acre help to buy your first home in Sydney. With 17+ years of experience, we provide you with the best buying assistance. Reach out to Quarter Acre to evaluate the market and explore the best properties Sydney has to offer.