10 Property Hunting Techniques for First Home Buyers

Understanding Your First Home Buyer Budget

Before you start viewing properties in Mount Druitt, understanding your financial position is crucial. Your first home buyer budget will determine what properties you can realistically consider.

Start by assessing:

• Your current savings, including any gift deposit from family members
• Monthly income and expenses
• Potential borrowing capacity with different lenders
• Deposit requirements, whether it's a 5% deposit, 10% deposit, or higher

Consider using the First Home Loan Deposit Scheme or Regional first home buyer Guarantee if you're purchasing with less than 20% deposit. These low deposit options can help you enter the market sooner whilst avoiding or reducing Lenders Mortgage Insurance (LMI).

The first home super saver scheme is another avenue worth exploring, allowing you to save money through your superannuation for your deposit whilst receiving tax benefits.

Get Pre-Approval Before Property Hunting

Obtaining pre-approval is one of the most important steps in your property hunting journey. When you apply for a home loan and receive pre-approval, you'll know exactly how much you can borrow.

Benefits of getting loan pre-approval include:

1. Understanding your realistic price range
2. Appearing as a serious buyer to vendors and agents
3. Moving quickly when you find the right property
4. Confidence during negotiations

During the first home loan application process, your broker will assess your financial situation, including income, expenses, debts, and credit history. This helps determine your borrowing capacity and which home loan options suit your circumstances.

Research Mount Druitt's Property Market

Mount Druitt offers various property types at different price points. Thorough research helps you understand what's available within your budget and which streets or pockets offer the qualities you're seeking.

Investigate:

• Median property prices in different areas
• Recent sales data and trends
• Property types (houses, townhouses, units)
• Future development plans for the area
• Proximity to schools, transport, and amenities

Understanding the local market helps you recognise genuine value when you see it. You'll also be better positioned to make informed decisions about whether a property is priced appropriately.

Understand First Home Buyer Eligibility and Grants

As a first home buyer in Mount Druitt, you may be eligible for several schemes and concessions:

• First home owner grants (FHOG) for new or substantially renovated homes
• First home buyer stamp duty concessions on eligible properties
• Access to the First Home Loan Deposit Scheme
• Regional first home buyer Guarantee for eligible areas

Check your first home buyer eligibility for each scheme, as criteria vary. Some have property price caps, income limits, or require you to live in the property for a minimum period.

Create a First Home Buyer Checklist

Developing a comprehensive first home buyer checklist ensures you don't overlook important factors when inspecting properties. Your checklist should include:

Property Features:

• Number of bedrooms and bathrooms
• Living space layout and size
• Parking arrangements
• Outdoor space and yard condition
• Natural light and ventilation

Structural Considerations:

• Age and condition of the building
• Roof, walls, and foundation condition
• Electrical and plumbing systems
• Signs of moisture, dampness, or structural issues

Location Factors:

• Distance to work and public transport
• Local schools and childcare facilities
• Shopping centres and medical services
• Noise levels and street traffic

Compare Home Loan Options Thoroughly

When buying your first home, understanding different home loan options is essential. Each product has features that may or may not suit your circumstances.

Consider these factors:

Interest Rate Types:

• Variable interest rate: fluctuates with market conditions
• Fixed interest rate: locked in for a set period
• Split loans: combination of fixed and variable

Look for interest rate discounts offered by lenders, particularly for first home buyers. Some lenders offer reduced rates for borrowers with strong financial profiles or those purchasing in specific locations.

Loan Features:

• Offset account: links a transaction account to reduce interest charged
• Redraw: access to extra repayments you've made
• Extra repayments: ability to pay more than minimum without penalties
• Repayment flexibility: options to adjust payment frequency

Working with a mortgage broker helps you compare home loan options across multiple lenders, potentially securing better rates and features than approaching banks directly.

Attend Open Homes Strategically

When attending inspections, approach each property viewing with purpose and preparation. Bring your first home buyer checklist and take notes or photos (with permission) to help you remember each property.

Tips for effective open home attendance:

1. Visit properties multiple times at different times of day
2. Talk to neighbours about the area and street
3. Check for potential issues: drainage, pest damage, structural concerns
4. Ask the agent questions about the property's history
5. Don't reveal your maximum budget to selling agents

Being systematic in your approach helps you make objective comparisons between properties rather than relying on emotion alone.

Consider Different Property Types

First home buyers often debate between buying an apartment vs buying a house. Each option has distinct advantages and considerations.

Apartments and Units:

• Generally lower purchase price
• Reduced maintenance responsibilities
• Strata fees for building upkeep
• Potential for higher density living
• May have parking limitations

Houses:

• More space and privacy
• Land ownership with potential appreciation
• Full responsibility for maintenance
• Generally higher purchase price
• Greater flexibility for renovations

Your decision should align with your lifestyle, budget, and long-term goals. Consider how your needs might change in the coming years.

Work with Professionals

Navigating the property market as a first home buyer becomes significantly more manageable when working with experienced professionals.

Mortgage Broker:
A specialist mortgage broker for first home buyers in NSW can:

• Source suitable home loan options from multiple lenders
• Handle the home loan application paperwork
• Negotiate with lenders on your behalf
• Explain complex lending criteria in plain language
• Identify low deposit options if needed

Conveyancer or Solicitor:
These professionals handle the legal aspects of property purchase, including:

• Contract review and explanation
• Property searches and title checks
• Settlement coordination
• Stamp duty calculations

Building Inspector:
A professional inspection can reveal hidden issues before you commit to purchase, potentially saving thousands in unexpected repairs.

Understand Your Loan Features and Repayments

Once you've secured your first home loan, understanding how to manage it effectively is important.

With a variable interest rate loan, your repayments will change as the interest rate moves up or down. Fixed interest rate loans provide certainty, with repayments remaining the same for the fixed period, though you may have less flexibility.

Consider setting up an offset account if available with your loan. This feature can substantially reduce the interest you pay over the life of your loan. Money in your offset account reduces the balance on which interest is calculated.

Redraw facilities allow you to access extra repayments you've made, providing financial flexibility for unexpected expenses. However, regularly using redraw defeats the purpose of paying down your loan faster.

Plan for Ongoing Costs

Property ownership involves more than mortgage repayments. Budget for:

• Council rates
• Water and utility bills
• Building and contents insurance
• Maintenance and repairs
• Strata fees (if applicable)
• Potential interest rate increases

Financial preparation for these ongoing costs ensures you can comfortably afford your property long-term, not just at settlement.

Property hunting requires patience, preparation, and persistence. By following these techniques and working with knowledgeable professionals, you'll be well-positioned to find and secure the right property for your circumstances.

Whether you're exploring properties in nearby areas or committed to staying in Mount Druitt, having the right support throughout your journey makes all the difference. Call one of our team or book an appointment at a time that works for you to discuss your first home buying plans and explore the home loan options available to help you achieve your property goals.