First home buying hacks you need to know
May 23, 2018
Buying your first home is usually one of the biggest investments you’ll make in your lifetime. From saving your deposit to cinching the deal – here’s what you need to do.
#1 Ditch the FOMO
We know it’s easier said than done, but ditching your Fear of Missing Out can save you thousands each year. Ask yourself these questions before you make a purchase: Do you really need that? Why are you paying to go? It’s time to stop wasting money. Every dollar you save brings you closer to moving out on your own (or finally being free of those pesky monthly rental inspections!).#2 Be that boring person
It’s time to be the sensible one who doesn’t splurge $30 on Uber Eats for Friday lunch. You’ll say no to after work drinks (unless they’re free of course) and you certainly won’t be hitting up Vogue Online Shopping Night. It won’t be the most exciting time, but you’ll love watching that house deposit grow. BUT you don’t want to totally deprive yourself so it's OK to let loose once in a while!#3 Study up
It sounds tedious, but you need to do some research so you can know when to spot a good opportunity. Look at what past homes have sold for and what current homes are receiving in rental income. Drive around potential neighbourhoods and look at factors like lighting, safety, transport, schools and shops. The trick is to do this on different days and times to get a true feel of the neighbourhood. Is parking on Saturday mornings a nightmare? Find out before you buy.#4 Don’t be charmed by a pretty reno
The saying “ buy the worse home on the best street” still has value. There can still be value in a renovators dream and if you’re buying for the long-term you can do it up over time. But beware of real money pits - it’s always a good idea to get that house inspection before you buy (see tip 5 below!).#5 Get the help you need from the professionals
Once you’re serious about a place, it’s not a time to be cheap. Spend the money to get a registered builder to inspect the place and give you honest advice. Don’t forget to check for the usual suspects like termites, structural issues and leaky roofs. A few dollars now could save you expensive repairs in the future.#6 Know your legal stuff
Understand the process of putting in an offer and the legalities that go along with it. Aside from price negotiations, there’s also other terms to consider for example deposit required, special conditions such as work to be done on the property and settlement dates (that’s how long until you can move in). Some contracts are even subject to finance conditions.#7 Don’t believe everything the agent says
Finally, while a good real estate agent is worth their weight in gold, ultimately they’re there for one reason: to sell the property. Be friendly but don’t believe everything they say.
From 1 July 2017 new rules allow eligible first home buyers to start saving a house deposit inside super.
Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.