For your first home loan, there are some important things to consider before you make a purchase.
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Find out if you are eligible for the First Home Owners Grant.
Up to $7000 of Government assistance may be available to those who qualify for the First Home Owners Grant. Find out more about the First Home Owners Grant (Government website), who is eligible and how to apply
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Make sure you know what your home loan budget is and stick to it!
It is easy to get caught up in the emotion of buying your first property and risk over-committing financially. Speak to a MyState Financial home loan expert about our home loan advice and pre-approval option* which may enable you to make an offer quicker, with the confidence of knowing exactly how much you can afford to spend.
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Consider the location of the property as well as the property itself.
This is important for capital growth. For example, are there shops or schools nearby? Are there any future developments in the area that will contribute to the capital growth of your property down the track?
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Look at the homes and buildings that surround the property. Get a feel for the area and go for a walk around the neighbourhood.
Can you see yourself living there? Also, talk to people you know who live in the area.
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Do your research
Do you know the recent selling price of similar properties in the area? Are there any council planning restrictions that may affect your plans for the property down the track? Are your neighbours planning any modifications to their property that may impinge on you? Neighbours and shopkeepers usually know the problems and plans for a particular area.
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Inspection is a must
Make sure you organise a pre-purchase building inspection on the property. Most often it is those little issues you cannot see such as cracking foundations or rotting floorboards that cost money and disappointment in the future.
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Think about your future plans for the property
Make sure it has the capacity or potential to meet these – e.g. room for an extension or garage.
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Make sure you have a clear understanding of any extra costs associated with the purchase and budget for them.
e.g. conveyancing and legal fees, home loan Lenders Mortgage Insurance (if applicable), body corporate fees (for units and apartments), council rates and home and contents insurance. Talk to a MyState Financial home loan expert – it may help you to manage your budget and home loan repayments more easily.
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Before you sign
Make sure you thoroughly read the contract of sale and seek clarification from your lawyer, estate agent or accountant on any areas of terms of the sale you are unsure of including making sure you understand the terminology.
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Make sure you have your new property and contents fully insured.
Talk to MyState Financial about our range of insurance options for home and contents.
* Loan applications are subject to MyState Financial’s normal credit approval criteria and may also require approval of a Lender’s Mortgage Insurer.
This list is not exhaustive, and as such is not a replacement for specific advice from qualified lenders, financial planners, accountants, solicitors and building consultants.