Becoming a homeowner is one of the most exciting milestones in life, but it requires careful planning, commitment, and a financial strategy. In this guide, we explore the main aspects to consider when purchasing your first or an additional home and becoming a homeowner or investor.
1. Building Your Financial Foundation
Before diving into the journey of homeownership, it’s essential to establish a solid financial foundation. The first step is to save for your down payment. Next, it’s important to clearly define your homeownership goal—are you envisioning a cozy apartment, a family-sized house, or a property that while it may not tick your boxes on your forever home, has potential for additional growth? Deciding on what you are specifically looking for will help to draft a genuine budget. Start by looking into your income, existing debts, and other expenses to ensure you aim for something realistic.
2. Strategic Savings Plan
Having a clear savings strategy is essential. Your plan should reflect your timeline to buy, showcase your risk tolerance and ensure a smooth process to regain your money if needed. With that in mind, it can be interesting to look into various types of investment such as high-yield savings accounts, fixed-term investments, investing in growth assets, eligibility for first-time owner’s grants from the Government, and other relevant points of focus. The team at Locumsgroup can help you narrow your focus to find the best options for you.
3. Understanding the True Cost of Homeownership
The down payment is just the beginning. When you buy a house, there is an array of additional fees that come into play, so it is smart to allocate a financial buffer to allow you to cover stamp duty fees, additional legal costs, property inspections & multiple additional invoices that might come into play.
Planning ahead and setting aside extra savings can make all the difference in managing these additional costs with confidence.
4. Mortgage Pre-Approval: Get Ahead of the Game
Securing a mortgage pre-approval is a crucial step in your home-buying journey. It not only gives you a clear understanding of your borrowing capacity but also signals to sellers that you’re a serious and prepared buyer. With pre-approval in hand, you’ll know exactly how much you can borrow, allowing you to focus on properties within your budget and set realistic expectations. It also strengthens your position when making an offer, showing sellers that you are ready to move forward quickly or even immediately is an advantage that can make a real difference in competitive markets.
When you make an offer on a property your currency has two characteristics, the amount of your offer, and sometimes the ability to move quickly.
Picture a purchase scenario when you make your offer to purchase and you can inform the real estate agent that “my offer is $XXXX and I can have this matter exchanged this afternoon if you can get the contract over to my solicitor”.
5. Mortgage Broker vs. Bank: Which is Right for You
When it comes to securing a mortgage, you generally have two main options: going directly through a bank or working with a mortgage broker. At Locumsgroup, our team of mortgage experts is here to support you through every step of the process. In NSW, mortgage brokers are paid by the lender, meaning there’s no direct cost to you—so you can feel confident that your best interests are being prioritised. To get started you will need to present important documents such as income statements, previous tax returns and bank reports so it is a good idea to have this all ready when deciding between a broker or a bank.
Additionally, finding out your credit score can be a great advantage in influencing the types of loans and interest rates available to you. Navigating mortgage terms can be overwhelming, but our experts are here to make it simple and ensure you fully understand all your options.
6. House Hunting & Auction Strategies
House hunting is the most exciting step of it all but it can also be overwhelming at times. As a financial team, what we can recommend is for you to take your time to explore the market, visit multiple homes and also navigate different online platforms to find exactly what you are after.
In competitive markets, auctions can be intense, so it’s essential to understand how they work and be prepared with a solid bidding strategy. In some cases, making an offer before the auction can help you avoid competition and secure the property at a fair price.
7. Long-Term Ownership: Building Wealth
After purchasing your home, it’s important to remember that it’s more than just a place to live—it’s a long-term investment in your future. A reminder that additional costs such as insurance, utilities, rates, and regular maintenance need to be included in your post-purchase budget. This will help you stay financially prepared and as the equity in your home grows, you may be able to use it to support future financial goals.
8. Estate Planning & Legal Considerations
When purchasing a home, it’s wise to think long-term and consider estate planning as part of the process. Ensuring your will accurately reflects your current assets, including your new property, is an important step in protecting your future. At Locumsgroup, we deal with a range of trusted legal professionals to help you create a comprehensive estate plan, giving you peace of mind that your home and assets are safeguarded for the years ahead.
The journey to homeownership can feel overwhelming, but with the right support, careful planning, smart saving, and expert guidance, it is entirely achievable. At Locumsgroup, we’ve been helping clients navigate the complexities of home buying for over 30 years. Our team of experts is here to support you every step of the way—from securing your mortgage to understanding the legal aspects of ownership.
Start your journey today and take the first step toward making your dream home a reality!
