Getting Started with Your Property Search
Buying your first home represents a significant milestone, particularly for first home buyers in Sunbury. The property search process can feel overwhelming without a clear strategy. Understanding how to approach your search efficiently will help you identify properties that match your needs and your first home buyer budget.
Before you begin viewing properties, establishing your financial position is essential. This includes knowing your borrowing capacity, saving your deposit, and understanding what you can afford. Many first home buyers benefit from securing pre-approval before attending inspections, as this provides clarity on your price range and demonstrates to vendors that you're a serious buyer.
Understanding Your Financial Position
Your first home buyer budget will guide every decision you make during the property search. Several factors influence how much you can borrow:
- Your income and employment stability
- Existing debts and financial commitments
- The size of your deposit
- Your credit history
- Lenders Mortgage Insurance (LMI) requirements
The Regional first home buyer Guarantee and First Home Loan Deposit Scheme can help eligible buyers purchase with as little as a 5% deposit without paying LMI. These low deposit options make homeownership more accessible for those who haven't saved the traditional 20% deposit.
First home buyer eligibility criteria vary between schemes, so it's worth exploring whether you qualify for first home owner grants (FHOG) or first home buyer stamp duty concessions. These can significantly reduce your upfront costs when buying your first home in Sunbury.
Creating Your Property Search Checklist
Developing a comprehensive first home buyer checklist helps you stay organised and focused during your search. Consider these priorities:
Location factors:
- Proximity to work and public transport
- Access to schools, shops, and amenities
- Future development plans in the area
- Safety and community atmosphere
Property features:
- Number of bedrooms and bathrooms
- Land size and outdoor space
- Parking availability
- Condition and age of the property
- Potential for future renovations or extensions
Financial considerations:
- Purchase price within your budget
- Ongoing costs like council rates and maintenance
- Potential for capital growth
- Running costs including utilities
Exploring Different Home Loan Options
Understanding Home Loan options is crucial when planning your property search. The type of loan you choose can affect your borrowing capacity and ongoing repayments.
Interest rate types:
A fixed interest rate provides certainty with your repayments remaining the same for a set period, typically one to five years. This helps with budgeting and protects you from rate increases during the fixed term.
A variable interest rate fluctuates with the market, meaning your repayments can increase or decrease. Variable loans often provide more flexibility and may include features like an offset account or redraw facility.
Some borrowers choose a split loan, combining both fixed and variable portions to balance stability with flexibility.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Simple Lending today.
Low Deposit Options and Government Schemes
Many first home buyers worry about saving a large deposit, but several options exist for those with smaller savings:
The First Home Loan Deposit Scheme allows eligible buyers to purchase with a 5% deposit or even a 10% deposit without paying Lenders Mortgage Insurance (LMI). This government initiative has helped thousands of first home buyers enter the market sooner.
A gift deposit from family members can supplement your savings, though lenders have specific requirements about how these funds are documented and used.
When you apply for a home loan, your broker will discuss which low deposit options suit your circumstances and explain the first home loan application process.
Conducting Effective Property Inspections
Once you begin viewing properties, attend inspections with a critical eye. Bring your first home buyer checklist and take notes on each property. Don't hesitate to ask questions about the property's history, any defects, or upcoming body corporate work.
Consider attending multiple inspections at different times of day to get a feel for traffic noise, natural light, and neighbourhood activity. Take photos (with permission) to help you remember each property's features.
Bring a tape measure to check whether your furniture will fit and assess storage space. Look beyond the styling to evaluate the property's bones – structural elements, plumbing, electrical systems, and overall condition.
Researching the Sunbury Property Market
Understanding local market conditions in Sunbury helps you make informed decisions. Research recent sales in your target suburbs to gauge whether properties are selling above or below asking prices, and how long they typically remain on the market.
Consider engaging with local real estate agents even before you're ready to buy. They can provide insights into upcoming listings and market trends. Building these relationships early can give you advance notice of properties matching your criteria.
Online property portals provide valuable data, but don't rely solely on these resources. Walking through neighbourhoods helps you understand the area's character and spot 'for sale' signs that might not yet be listed online.
Leveraging Loan Features
When reviewing Home Loan options, consider features that provide flexibility:
An offset account links to your home loan and reduces the interest charged on your mortgage balance. Any funds in this account offset your loan balance, potentially saving thousands in interest over the loan term.
Redraw facilities allow you to make extra repayments and withdraw them later if needed. This provides flexibility while helping you pay down your loan faster.
Interest rate discounts may be available based on your loan size, loan-to-value ratio, or whether you're a professional in certain industries. Ask your broker about available discounts when you apply for a home loan.
Understanding Stamp Duty and Grants
First home buyer stamp duty concessions vary by state, and understanding what's available can significantly reduce your upfront costs. Victorian first home buyers purchasing in Sunbury may be eligible for exemptions or reductions on stamp duty for properties under certain price thresholds.
First home buyer grants provide additional financial support, with eligibility depending on factors like property value, whether you're building or buying existing property, and your residency status. The first home super saver scheme allows you to save inside your superannuation fund, providing tax benefits when building your deposit.
Your mortgage broker can explain which concessions and grants apply to your situation and how to access them during your first home loan application.
Making Your First Home Purchase
When you find a property you love, act promptly but don't rush into decisions. Arrange a building and pest inspection before making an offer – this small investment can reveal costly problems and provide negotiating power.
Before signing anything, ensure your finance is confirmed. Your pre-approval provides a foundation, but formal approval requires a property valuation and final assessment by your lender.
Consider seeking legal advice before signing a contract of sale. A conveyancer or solicitor can review the contract, explain your obligations, and ensure your interests are protected.
Working with a Mortgage Broker
Engaging a mortgage broker provides valuable support throughout your property search and purchase journey. Brokers have access to multiple lenders and can compare Home Loan options to find suitable products for your circumstances.
Your broker will guide you through the first home loan application process, help gather required documentation, and liaise with lenders on your behalf. They can explain complex concepts like LMI, offset accounts, and various interest rate options in plain language.
When searching for properties, knowing your borrowing capacity and having pre-approval arranged by your broker means you can make offers with confidence.
Planning for Ongoing Costs
While focusing on the purchase price and deposit, don't overlook ongoing homeownership costs. Your first home buyer budget should account for:
- Mortgage repayments
- Council rates and water charges
- Home and contents insurance
- Maintenance and repairs
- Body corporate fees (if applicable)
- Utilities and services
Understanding these costs helps ensure you purchase within your means and maintain financial stability after settlement.
If you're considering buying your first home in Sunbury, researching local costs provides realistic expectations about homeownership expenses in the area.
Property search strategies for first home buyers involve careful planning, thorough research, and professional guidance. By understanding your financial position, exploring available schemes and concessions, and taking a systematic approach to viewing properties, you'll be well-positioned to find the right home.
Call one of our team at Simple Lending or book an appointment at a time that works for you. Our experienced mortgage brokers specialise in helping first home buyers in Sunbury and can guide you through every step of your property purchase journey.
