Buying a house is a huge decision to make. If you’re considering it, whether for your own stay or for investment, you need to make sure that the purchase aligns with your priorities and needs.
At First Home Buyers Direct, we know how important it is to prepare yourself financially and mentally before owning a home. If you want to know if you’re ready to purchase a house and whether it’s the right one for you, below are some helpful questions you can ask yourself.
1. Why Do I Want To Buy A House?
The most important question to ask yourself is what’s your purpose of buying a house. Many first time buyers rush to buy property because of pressure from society and family. If you think that you just “have” to own a house by a certain age, then maybe you’re buying for the wrong reason.
Instead, buy a house because it satisfies your own goals and needs; like as an investment property or because you’re starting a new family. Purchasing a house for the wrong reasons can spell disaster especially if you can’t afford it.
2. Can I Afford The Payment?
Buying a house is a massive financial commitment. Before you sign any contract, take a look at your finances and make sure you can afford a mortgage. With banks tightening their lending requirements, it’s not uncommon for them to require 20% downpayment, so make sure you can save up for it.
You also need to think about other costs such as the stamp duty, legal fees, insurance and homeownership costs like utilities and council rates. If you’re buying together with another party (eg. your spouse), make sure they can afford the house payments as well.
Saving up for a house can take a long time. Fortunately, if you’re a first-time buyer, you can utilize the WA First Home Owners Grant which gives you a one-off $10,000 incentive to purchase your house.
3. Am I Planning To Keep It Long Term?
As you consider different houses and neighbourhoods, ask yourself if you’ll stay there for at least five years. Will your needs change by that time? Are you going to change careers and move away? If you foresee big changes in your future, you should reconsider buying a house.
However, if you move out of your home, you can rent it out and potentially use the earnings to fund your living expenses. You could even buy a second house if your rental yield is good enough. Of course, the rental return will depend on a number of factors like location and type of property.
4. Where Do I Want To Stay?
When deciding where to stay, you need to take a look at your lifestyle, work and family’s needs. Do you like to go for runs in your neighbourhood? Do you need to have a school nearby? Consider the distance to your office and local amenities like public transport and supermarkets.
Living in the right location can make a world of difference, so decide on it wisely. First Home Buyers Direct has a range of house and land packages around Perth’s most sought after suburbs, so be sure to check them out.
5. What Are My Must Haves In A House?
To help you pick the right house, list down the features that you must have. If you have a big family, you may want a large space with four or five rooms, or even an alfresco area where you can all dine together.
List down the type of house you want, its size including outdoor space, its features and design. Sit down and discuss with your family about what you want so everybody can be happy with the house.
6. Do I Want A New House Or A Fixer-Upper?
There are pros and cons to buying a house on the secondary market as opposed to a new house. A second-hand house usually costs less than a new one.
Also, with land plots getting smaller and costlier, you’d have an easier time finding an affordable second-hand house with the space you want. That being said, you must be prepared to set aside funds for repairs and renovation if you follow this route.
If you prefer a modern house and don’t want to be bogged down by the cost and time it takes to fix up a home, then a new house would be a better choice. If you’re a new buyer, you may find it more cost-effective to purchase a new property since the WA first home owners grant is only applicable to new homes.
By asking yourself these questions, we hope you’ll have a smooth home purchasing journey. At First Home Buyers Direct, we are dedicated to helping Australians own the home of their dreams, so if you’re shopping for a home don’t hesitate to get in touch!