5 Steps Towards Owning Your Own Home

Nobody would suggest that buying your first home in NSW is easy, but some careful planning can certainly smooth the process. Buying a property is one of the most important financial decisions most people make in their life, so it’s important to approach the task logically.

Wendy Brown, Head of Broker Sales at Macquarie, says that too many first-home buyers let their emotion override their common sense – or rush into a purchase without doing enough research.

“Some people buy because they’re worried that they’ll never get that opportunity again,” she says. “Or they fall in love with a beautiful kitchen. Falling in love with one aspect of a home could override 10 things that aren’t right about it. ¹

Ms Brown says people should draw up a detailed list of their key requirements (such as location, number of bedrooms, parking etc) before they even begin looking for a new home.

“Take the time to write down what you can and can’t compromise on, before you start house hunting and make sure you stick to your guns.”

Anyone looking to buy an off the plan apartment, should make sure that the property in question aligns with their unique requirements – whether they are buying as a single, a couple or a young family.

[First-home buyers may also qualify for a range of government incentives, such as an exemption from NSW transfer duty – to see what you might qualify for download the information brochure here.]

Here are the five essential steps on the path towards home ownership:

Step 1. Find your loan

It’s no use looking at apartments if they are out of your price range. When you visit a mortgage broker take along your ID, proof of income, and evidence of any savings, and financial commitments (credit card debts, car loans etc.). Your broker will be able to tell you how much you can comfortably borrow, or how much more you’ll need to save.

Step 2. Find your tribe

Buy where you want to live. Most people will want to remain close to a network of friends and a place of employment, so the chosen region will probably already be familiar territory.

Step 3. Find your home

Look for an apartment and buy off the plan. Why? Because all things considered, apartments are a lot more affordable. Sydney’s median house price is sitting at around $1.46 million, compared to a median apartment price of $758,700. Buying a new apartment also opens the door to various government assistance programs. ²

Buying off the plan has many benefits including the need for a smaller deposit, tax breaks, the potential to attract a premium rent, lower maintenance costs, capital growth if prices rise while your apartment is being built, and more time to save during the time between signing the contract and your apartment being completed. ³

The safest way to buy off the plan is to always look for a reputable builder with a proven track record, such as ALAND, a family-owned business providing quality homes for more than 20 years.

Step 4. Find your conveyancer

A conveyancer is an expert who will hold your hand through the complex process of purchasing a home. Sure, you could find a conveyancer online, but we’d suggest you should rely on word-of-mouth. Ask your family, friends, or mortgage broker who they have used in the past.

Step 5. Find the right savings account

During the time between signing a contract to buy your off the plan apartment, and the time it takes to complete it, you have the opportunity to save as much money as possible. Your savings means you won’t have to borrow as much money to settle your purchase.

Conclusion:

Ken Morrison, Chief Executive of the Property Council of Australia, says there are many advantages of buying off the plan, provided you are dealing with a reputable developer with a good record and a trusted brand.

“If you get in early, at the start of a project, you can also choose something specific to your needs and have the choice of all the apartments that are going to be built,” he says.

“The regulatory processes and compliance regimes have recently been strengthened around the country, so people can now approach the decision with much more confidence.” ⁴

Case Study: The Gladstone Village, Merrylands

First home buyers and investors are excited about the imminent completion of Quartz, the first release of The Gladstone Village, ALAND’s masterplanned community located in the heart of Merrylands. One-bedroom apartments at Quartz start from $544,500 and residents enjoy resort-style facilities, including a swimming pool and barbecue area, plus good access to schools, shops and transport.  With the completion date approaching, stock is limited, so please contact the ALAND Sales Team on 1800 025 263 or fill out your details below.

1 Source: Macquarie
2 Source: The Sydney Morning Herald
3 Source: Canstar
4 Source: The Daily Telegraph