First Home Buyers 2016: Your Top 8 Questions Answered – Part 2

At the start of the year you see many property experts come out and make their property market predictions for the year ahead.  So we thought we would assist first home buyers with: your top 8 questions answered.

We have gathered expert opinions from our FHBA Services Community to discuss the answers to key questions first home buyers are asking right now.

The FHBA Services Community expert panel includes:

The answers are so comprehensive, we’ve had too split this blog post into two halves! Below is part 2. If you missed part 1, please click here.

5. With an influx supply of medium-high density housing coming onto the market in 2016, is it better to buy an apartment closer to a city or a house in the outer suburbs?

Singh: “This still comes down to lifestyle and your future family planning, however with more apartments coming onto the market in 2016 first home buyers will have a greater range of options to select from.

For buyers looking at growing their family in the near future or already have children, they may prefer to buy a three bedroom home in the outer suburbs due to factors such as:

  • Being more spacious
  • Proximity to open areas such as parks
  • Sense of community
  • Quieter”

Cohen: “Couples and young couples with no imminent plans of children may prefer to buy a one bedroom apartment in the inner city due to factors such as:

  • Proximity to the workplace and/or place of study
  • Greater entertainment options including restaurants & nightlife
  • Less maintenance

The important thing to remember is that buying a property is a long term purchase. You should think about where you want to live, both now and into the future. Think about what housing features and what housing area will be important to you in 3 – 5 + years from now.”

6. With competition amongst lenders for owner occupied home loans high at the moment, how can first home buyers take advantage of the favorable conditions?  

Jovcevski: “Information is power when it comes to choosing the best home loan so ensure you do your research about what rates are available in the market. With this information on hand you will be able to see through lender’s advertised rates and negotiate yourself a better deal by demanding they match more competitive rates elsewhere.

Avoid getting tied up by all the shiny home loan features and choose a home loan that suits exactly what your needs are. As a first home buyer, you’re better off choosing a basic rate at the start since a large portion of your cash will go towards meeting your minimum repayments and you don’t want to be paying for features you don’t really need.

Once on top of your loan, you can always upgrade to a home loan with more bells and whistles and start taking advantage of features such as an offset account.

Lenders are competing more fiercely than ever for good customers so if you have a larger deposit and good savings history, you’re in a better position to negotiate with your lender when it comes to interest rates. As a general rule the more deposit you have, the better your bargaining position will be.

In addition to a competitive interest rate, first home buyers should choose a lender that is able to walk them through the buying process step by step and explain all the necessary complexities and jargon. This may mean choosing a traditional bricks-and-mortar lender or mortgage broker to give you that extra level of support during purchase.

Please click here to view a table of home loans currently on offer

Please click here if you would like to speak to a mortgage broker who can assist you explore your home loan options and answer any lending queries you may have

7. With an increase in natural disaster weather events recently, what is the best way to protect new first home buyer’s properties from future weather events?  

Passagne: “Mother Nature is unpredictable. No one knows when or where she will strike next and how hard. The best way to protect your home from damage caused by severe weather events is to take out insurance coverage with a large, reputable insurance company. When a natural disaster hits, a lot of homes are all damaged at the same time. There are only so many resources available to go about assessing damage and more importantly fixing the damage. In these circumstances, we have found that larger insurance companies have the resources at their disposal to mobilise a dedicated claims response unit to the affected area. This makes lodging the claim as well as the assessment and repair process a lot easier and faster.”

8. Electricity is one of the expensive household costs first home buyers usually underestimate. As already seen in 2016 Australia is experiencing scorching temperatures. How can first home buyers cool themselves (& warm themselves in winter) whilst limiting their power costs?

Russell: “Any first home buyer can follow the age old Aussie traditions of heading down to the beach in your budgie smugglers, devouring an ice cold treat from the local ice cream truck or grabbing an ice cold brew, complete with stubby holder, to help keep them cool.

Or they could invite themselves over to their new neighbours house to use their pool or Netflix and chill in their air conditioned media room.

If these ideas aren’t appealing to a first home buyer, they could have solar installed to help offset their daytime power usage and reduce their power costs.

This would allow them to utilize their Air Conditioning during the day, have all of their high speed fans running or simply open the fridge and stand in front of it all day long.

My Tip is: Choose solar, it’s the coolest way to keep cool.”

That is the conclusion of Your Top 8 Questions Answered two part blog. Thank you to our entire FHBA Services Community expert panel for sharing their views and opinions.  We hope the information proves useful to aspiring first home buyers in 2016.

Please note our website is in no shape or form designed to replace the need to obtain professional advice from experts such as Financial Planners. All information on our website is general & factual in nature, and should not be relied upon. In particular, we wish to remind you that the information in this article is not designed to replace advice. We always recommend you speak to a licensed professional.  Please visit our website’s Terms & Conditions for more information.



First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.