Thinking about buying your first home?

If you’re thinking of buying your first house and are wondering where to start, the first thing to do is consider your overall goals. These can have an impact on some big decisions, like the timing of your purchase, where you should buy, and what you’re looking for in a first home. We’ve put a list together of some things you might like to think about over the next 10 years

• What will your career look like? Are you planning to stay in your current role or industry or is a big change on the horizon? Most importantly, will you have a stable income to make your mortgage repayments?
• Where do you see yourself living? The suburbs, the city, or a rural area? Consider proximity to work, your family, and whether your favourite takeaway is nearby. Okay, maybe not the latter, but have a good think about what you need close by.
• Who will you be living with? Is starting a family on the cards anytime soon and if so, what impact could this have on your mortgage repayments or the size of home you’ll likely need?
• What other pricey items could pop up during this stage of your life? Maybe it’s a bigger car for the family, or expensive education costs. It’s important to prioritise these known costs against your first home buying plans.

These factors, combined with your current savings and financial situation, will play a big part in whether now’s really the right time for you to buy your first house or whether you should keep saving.

Buying a house involves more than just saving your pennies for a deposit. Being aware of the homeownership costs early on can help you prepare. Some expenses that come with owning your home include:

Mortgage repayments

These are likely to be the biggest ongoing cost when it comes to your home. That’s why it’s important to get a mortgage and interest rate that works for you.

Renovation costs

If you decide to purchase a house that needs some work done before you move in, you’ll need to factor in the renovation costs and how long this likely will take.

Repairs & maintenance

Consider the costs of general maintenance such as painting the exteriors, roof maintenance or replacement, and jobs such as repairing faulty wiring or plumbing.

Rates & insurance

Council rates can be a large cost that homeowners face, so make sure you factor these in during the planning stage. Different areas have different rates - which you can check on local Council websites.

You’ll also want to consider your insurance needs, and the cost of obtaining products such as home and contents’ insurance or insurance to cover your loan repayments.

The costs you might not have thought of

It’s easy to overlook costs that aren’t immediately obvious, such as loan application costs, moving costs and conveyancing fees. They’re all just as important as the above, and will need to be paid, but are often overlooked, so pop those on your budgeting checklist too.