The Young Family Home Buying Guide
- 1 September 2020
Many baby boomers delight in horrifying younger generations with tales of their first homes: Cramped and crumbling apartments with dysfunctional hot water systems and decaying walls. Buying your first home used to mean toughing it out in a tiny, run-down shack until you could build some equity and finally afford your dream home. These days, however, times have changed. With a steadily booming economy and record low-interest rates, young families in Australia are finding they’ve got plenty of choice when it comes to buying a new home. That’s not to say that the process can’t be fraught with hurdles. With so much to consider, and so many legal and financial considerations to make, it can be easy to rush into a purchase which is less than perfect for your situation. However, by following a few simple steps and keeping your wits about you, you can be sure to find the perfect new home for you and your young family.
You wouldn’t shop for a car without having an idea of how much you could spend, and whether or not you’ll be able to finance it. The same goes for buying your first home – or any home, for that matter. Getting pre-approval from your bank or financial institution not only helps to give you an idea of just how much you’ve got to spend, but also takes a lot of the pressure off when it comes to beginning the search for your new home. Generally, your pre-approval will last around 90 days (however, this can differ between different banks, so be sure to check) and allows you to begin the hunt with a good idea of your budget in mind.
Have a clear idea of what you need
Are you planning on starting a family? Perhaps you’ve already got a couple of kids, and you’re hoping to move into a home which will serve your need and theirs, as they grow. When it comes to buying a home as a young family, there are several important factors to keep in mind. These include considering the local schools and childcare centres in the area, as well as the suitability of the neighbourhood and the local amenities. Would a larger backyard and local parks and playgrounds better suit your lifestyle than an inner-city apartment? Is there enough storage space to accommodate everyone? Does the layout of the home suit your family’s lifestyle? When you buy a new home it’s important to think about what works for you now, but also be aware of what you’re going to need in the future. Make a ‘must have’ and a ‘nice to have’ list which covers all that you’re looking for in a home and keep this in mind when you’re on the hunt for your new property.
Know what costs you’re in for
Owning a home is worlds apart from renting, and if you’re considering making the leap to your first mortgage, it’s important to understand the other costs that you might have to factor in. As well as your mortgage repayments, you’ll have a few new expenses to think about, including home insurance, body corporate fees (if you’re in a strata building or apartment, for example), conveyancing fees and other costs associated with the purchase of the home, and more. That’s not to mention energy bills, lawn maintenance, and general ongoing maintenance of the property. If this is all news to you, it’s a good idea to speak with your financial advisor and get a break down of all the costs you can expect to incur when you purchase your new home.
Make sure to have the proper inspections done
Your bank or financial institution will most likely want an appraisal done before you purchase your home, however there are other inspections which are also important to consider. A building and pest inspection, for example, will ensure that the building you’re about to buy is in a sound condition and will warn you of any potential issues. Inspecting for pests such as termites is also important, if you’re buying an existing property. Of course, there are benefits involved with buying a new house and land package, in that you won’t need to worry about any structural issues or degradation from termites and the like. In fact, a house and land package is one way to ensure that you avoid these kinds of issues entirely, and goes a long way to making the purchase of a new home that much more straightforward.
Buying a new home for your young family is an exciting time. By keeping in mind these few key factors, you can be sure to find the home that suits your family’s needs and fits your lifestyle now and well into the future. To talk to us about buying a house and land package in one of our master-planned communities, get in touch with one of our property consultants today.