First Home Buyers 2016: Your Top 8 Questions Answered – Part 1

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.

Top 8 Questions Blog Image

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 to split this blog post into two halves! Here is Part 1. Part 2 will follow tomorrow.

1. What is the best tip on boosting your savings for your first home deposit?

Singh: “Saving for a house deposit can be a big ordeal. It takes time, it requires lifestyle sacrifices and it is also stressful as you watch your dream properties change in value while you work hard to put a deposit together.

If you start with paying off any existing debts such as personal loans and credit cards, you will reduce the amount of interest you are paying to financial institutions. Once paid off, you can put your excess cash-flow into savings products to boost your financial position.

If you have already moved out of their family home or are renting, you could consider moving back into the family home to boost savings or alternatively consider dual occupancy if you are currently renting.”

For some additional savings tips please click here.

To compare a selection of Online Savings accounts currently on offer please click here.

To compare a selection of the latest Term Deposits on offer please click here.

2. What is the most important factor for first home buyers to remember when negotiating on their first home in 2016?

Singh: “First home buyers should make sure they complete appropriate market research before negotiating. For example checking comparable sales in the area and checking how much properties have sold for in comparison to their initial listing price. When doing this research, first home buyers should factor in how the market is performing right now in comparison to the period in which the comparable sales were made.”

Miraglia: “The most important thing to remember is to keep your emotions out of the negotiating. It is an exciting time buying your first home, but try not to get emotionally attached to the house before it is yours. Take someone you trust to help you keep a clear head when making an offer – you don’t want to offer too high and pay too much, but you also don’t want to offer too low and risk missing out!”

3. Is it necessary getting all the property checks on the properties you are interested in?  

Coppe: “Yes, it is extremely important to get any property thoroughly checked by a professional. Whether you are purchasing your very first home, your dream home or an investment property, it is one of the biggest steps in life, not to mention one of the biggest purchases most people will ever make.

Getting a pre-purchase or a new home construction inspection done on your property by a professional is vital towards protecting yourself. Over the years we at Above Board have helped many Australians and have saved them many nights of stress as well as many thousands of dollars.

In this day and age it really is not wise to buy or build a new property without an inspection first. Find out exactly what you are buying into, make sure you are not moving into any nasty surprises.  Being informed of any major structural defects or minor maintenance issues and repair needs. All building inspections must comply with Australian standard AS 4349.1-2007.

Above Board is one of the few companies to use the latest technology thermal imaging cameras in our building and pest inspections. This technology can assist in detecting termite activity and other building defects in areas that may not be visible with the naked eye, therefore providing a much more accurate and thorough inspection. Some of the areas it will assist us in are with termite detection, water leakage, dampness and missing insulation.

It is vital when engaging an inspection company to ensure you will receive the right information and a report that is easy to read & understand.”

4. Can first home buyers trust the contracts put forward by agents & vendors?

Francis: “Whilst agents and vendors are required to prepare Contracts of Sale in accordance with the Estate Agents (Contracts) Regulations 2008, there is no standard wording for ‘Special Conditions’ that may be added by either the vendor or the purchaser. It is always strongly recommended that any purchaser have the Contract of Sale checked by a Licensed Conveyancer PRIOR to making their offer. Awesome Conveyancing offer this service in Victoria, at no cost to the purchaser and with no limit on how many Contracts need to be checked/reviewed.”

That’s it for part 1 of Your Top 8 Questions answered. Part 2 has been published today (01 Feb 2016), click here to read it.

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.

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