All investments require preparation. We don’t just jump in and figure things out as we go along. We research, we plan, we make calculated steps and see which parts we can afford to risk. Then, we invest.
Some of the questions we might want to ask ourselves are:
How to buy your first home in Melbourne?
What are the best suburbs to buy your first home in Melbourne?
We have compiled a list of some of the important questions we need to ask ourselves before buying our first home. Check them out below.
How do I find the right loan?
Finding the right loan requires preparation on your end. It’s important that you research for a mortgage broker that best fits your needs. Most people’s consideration is always the lowest interest rate, but it’s not the only one that you need to take into account.
The payment scheme is one thing you should also consider. A flexible payment term would help you more than a lower interest rate.
Can I afford this property?
Ask yourself if you can afford the property without compromising any of your other financial commitments and priorities. A property is an investment but it doesn’t mean you have to go broke on its account.
Consider also that after you buy a property, there are also other expenses that you have to prepare for. Moving out of your current home and moving into the new one; new appliances and furniture (if needed); basic renovation or remodeling, and landscaping if you have a backyard or a garden.
Is the location a smart choice?
This could very well become one of your biggest considerations as it will define your way of life moving forward. Is it near your workplace? If you have kids, is it accessible to their school?
How about the property’s proximity to essential and recreational services like a hospital, the grocery store, and a park.
Are there plans for further infrastructure or development in the area?
Consider this: if initially you chose the property for its location because you think it’s a quiet suburb, and then a few years later, it becomes a very urbanised city-like community with so much traffic and not much peace and quiet.
You need to make sure that the plans for the community in terms and infrastructure and other developments are something that aligns with your plans.
How can I make this property attractive to renters?
If the goal is to make a passive income out of your new property, make sure to invest in how the space looks and how you can combine style and function.
Look around you and check out what places of interest are near your place.
What are my future investment goals?
One should also take into account what their investment goals are. Buying your own property is just one of the many investment goals you will have in your life. Plot out your short-term and long-term financial and investment goals to know when buying a property fits in the timeline.
Getting your very first property takes time to plan, research, and prepare for. Like with any investment goal, it requires a lot of things and also comes with risks. So, better to plot a timeline for yourself and your goals and slowly tick them off one by one.
Other tips for first-time homebuyers:
