The Brisbane property market appears to be behaving differently to the southern states of NSW and VIC, with perspective growth planned in the next 3 years. This is good news for Brisbane which is likely to perform against the overall predicted trends for the Australian property market.
How the economy, the RBA and lenders will behave considering these trends is debatable, however, 2019 could establish an opportunity worth considering for first home buyers.
So what resolutions may you consider for 2019 to help you on your journey to your new home?
1. Manage Your Credit Rating and Impress Your Lender!
Have a close look at your credit rating and your spending behaviour. When the time comes to apply for your first home loan, the lender will want to satisfy themselves that you are creditworthy and able to make your repayments every month.
They establish this not by what you say but by what you do! Lenders will ask for your bank statements as far back as 6 to 12 months. Your information is entered into modern sophisticated computer systems that will profile your behaviour and spit out your ability to make payments each month.
Look closely at your spending behaviour and imagine the lender’s representative that will closely analyse this in the future and if your spending behaviour needs to be modified, then act on it quickly.
2. Save, Save and Save towards a 20% deposit
Saving has never been easy, particularly when our daily lives are constantly filled by online messages wanting to sell us products and services!
Yes, there are lender’s that require less than a 20% deposit, but it comes with a price. The price is called lenders mortgage insurance which will add considerable to cost to your first home.
To avoid mortgage insurance, first home buyers must have a saving plan which eliminates some of the unnecessary day to day costs that automatically increase your bank balance. Where saving has proven difficult, you should reach out to someone that can assist you in creating a budget and sticking to it. Brisbane Home Loans Mortgage Brokers can assist you with such a plan if necessary, at no cost.
If you need information about money saving APPS, read this article on our website.
3. Visualise What You Can Afford
What we want and what we can afford are often different!
Entering the market can be more important than waiting until you can afford your dream home, particularly when housing prices are rising.
Once you enter the market and purchase your first home, the price of your property will behave in accordance with the market, therefore if the market increases and you have chosen well, your property price will increase with the market. Naturally, this makes upgrading your home much easier than entering the market at the higher price which requires a larger deposit.
4. Collect Market Information and Trends
Gathering information is not about how much information you have but how accurate your information is. Property prices can be relatively flat at times, but in growth markets, the opposite is true.
Fluctuations in the property market can send you bonkers, particularly if all you do is follow the news. Ensure you establish contacts with agents, visit open homes occasionally and take the time to speak to the local agent.
Develop a general idea of interest rates in the market that are available through the major lenders and some of the secondary lenders. Don’t be afraid to establish a relationship with a Mortgage Broker like Brisbane Home Loans. A Broker has daily contact with lenders and rates, therefore they are a very good source of information.
Commence to identify suburbs you can afford and are attractive to you as an address. Undergo research in terms of access and convenience to public transport, shopping centres, schools and whatever other services are part of your life.
5. Surround Yourself with People & Companies You Will Need to Purchase Your First Home
Buying your first home will appear complicated when you don’t have the relationships in place or the benefit of previous experience! When the time arrives, you will deal with a real estate agent, a broker, a lender, a lawyer, an accountant, a removalist, a building and pest control inspector etc.
As part of your journey to your first home, start to identify and establish relationships with individuals from these industries. Having a relationship with several agents will give you more options and better accessibility to properties.
Relationships with brokers, accountants and lawyers will start to influence your behaviour and prepare you for your purchase. These professionals understand the pitfalls associated with purchasing a property and can assist you. For example, having access to a Lawyer, will give the option of having a purchase contract reviewed by the Lawyer prior to you signing it, which ensures you have peace of mind.
6. Look to Your Family for Assistance
Parents and family members can assist you in more ways than just lending you money. If you are fortunate to have a baby boomer parent, then you may also be fortunate that they own their own home which may be paid off.
A parent or family member can borrow against their own home to lend you money or they can act as a guarantor on your new purchase. They may also be willing to allow you to use their property as security which could reduce the amount of deposit that you will need for your purchase.
If you don’t ask, you will never know!
As you continue your journey to your new first home in 2019, remember that the team at Brisbane Home Loans are passionate about getting people into their first home. The team is ready to assist and guide you along your journey.