Anyone looking to buy their first property?
First home buyers are putting aside their nerves and making a comeback to the property market. After lying low for 12 months, the number of new home loan commitments by first home buyers is on the rise, according to the Australian Bureau of Statistics.
Interest rate stability, an increase in rents and a lull in house values has given buyers the confidence they need to enter the market. While first home buyers face a tougher economic environment than last year, a growing number have decided not to let this stand in their way.
You too can fulfill your dreams of home ownership and join the ranks of first home buyers. Here's how.
The more knowledge you build about something, the less fear you have of it. It's the same for buying your first home: it may seem daunting at first, but the more you educate yourself about the process the less difficult it seems. Use the internet, your mortgage broker, your local real estate and any experience friends and family may have, to find out as much information as you can about the property market - remember a little knowledge goes a long way!
Know what you are getting yourself into and be equipped to handle a change in circumstance. If interest rates rise, for example, be prepared to adapt your lifestyle to suit higher mortgage repayments.
You don't need to go it alone when there are experienced people to turn to for guidance and advice. The QBE LMI lmiBAROMETER Report found that 41 per cent of first home buyers will use a mortgage broker to help them find the best home loan deal. Seeking professional advice can help you feel a lot more relaxed about the whole home buying process - turn to page 4 to find out why it makes sense to use a mortgage broker.
Accept that you may need some financial assistance to get your deposit together, which in many cases comes in the form of lender's mortgage insurance (LMI). It is estimated that five out of ten borrowers will require LMI if they are to enter the market - without it you may have to wait for years to save the funds needed to get a 20 per cent deposit and by this time, house prices may have risen beyond your reach.