How to buy your ideal first home while avoiding all the costly mistakes others make
Your first home could be the smartest investment you ever made - if you seek the right advice
It’s an exciting time in your life.
You’ve made that decision to buy your first home. But there’s so much you don’t know! And there’s so many questions swimming in your mind.
So, what do you do?
Answer: Seek expert help.
In 2015, that’s what our client Karen did when she turned to us for guidance.
She knew exactly how she wanted to secure her financial future. At Think Investment Realty, we were able to make her dreams a reality.
For her first home, Karen wanted a property in a specific suburb on the Sunshine Coast. The location was very important for Karen, as she is active in her community. She wanted to maintain her community ties while making a smart investment.
As she worked for home, Karen wanted to set up a home office in her new residence. She planned to live in this property for at least 12 months.
It was also important for her to move in as soon as possible.
At the same time, there were budget constraints to consider. Karen was a young first home buyer. Her funds were limited.
With our guidance, Karen Wright chose a property with incredible capital growth. Since the time of her purchase, the value of her home has gone up by $250,000.
Why Is It a Good Idea to Start Investing Right Away?
It is possible to make your first home function as your first investment property.
Instead of spending your income on rent, you can look into the right mortgage and own a house or unit of your own. If you choose your property well, its value will grow rapidly.
At the right moment, you can sell your property and gain a great deal of additional capital. Then, you move on to your next home.
This process is called the property ladder. Many investors base their strategy on climbing up the ladder.
What Makes a Property Profitable?
Before you make a purchase, here are a few of the things you should take into consideration:
What is the key to finding a successful investment property? You have to be in the right place at the right time.
It’s crucial to study market trends before you make your investment. You can’t find a low-risk investment property without doing a fair bit of research.
But you should also keep in mind that you’ll live in your new home at least for a while. Hence, it has to fit your personal requirements too.
Ask yourself the following questions:
- Is the area doing well financially?
- Are the local businesses stable?
- Can you picture the neighbourhood flourishing in five years?
- Is the property close to your place of work?
- What are your transport options like?
- How soon can you move in?
There are many more factors to look into to determine if you’ve made the right choice. Your aim is to figure out how much capital growth you can expect a few years down the line.
Should you look into a townhouse or house & land? What’s more popular with buyers in the given area?
Like in Karen’s case, you may have some unique needs when it comes to the layout of your new home.
When you become a seasoned investor, you will be able to purchase new properties without caring about the details. But for your own home, you have to strike a balance between your own needs and your future buyers’ needs.
In our experience, first home buyers have a lot of options.
Of course, the most important part is to select the right mortgage. But there are also government grants that you can apply for as a first home buyer. Some builders offer compelling incentives.
If you make use of every option at your disposal, you may be surprised by your own capacity.
With experience over the past 10 years of helping first home buyers, we can help you with every step of the process from selecting the right property
- getting a fixed price contract,
- assisting with preapprovals and then
- getting your loan using our exceptional finance brokers to
- applying for your First Home Owners Grant and having it paid at the right time.
What Can You Expect from Us?
It’s clear that the success of this investment depends on your decisions. But new buyers don’t have the knowhow to make all the right decisions. Even if you do a lot of research on your own, you may miss out on a key detail.
Think Investment Realty can give you the advice you need to get ahead.
For investors like Karen, our expertise made all the difference. We helped her find a Sunshine Coast property that met all of her requirements.
Back in late 2015, this property sold for $432,000. At this point, Karen could sell it for $680,000.
What exactly do we do to ensure that your first home is a smart investment?
We begin with assessing your financial situation. Our team can give you suggestions for expanding your capacity. Additionally, we can put you in touch with financial experts who can improve your budgeting plan.
The main goal here is to get a realistic idea of your budget constraints. But we also offer advice about property investments.
If you have any questions about the process, we are happy to help.
Taking all your needs into consideration, we then find you a selection of potential properties.
Our team uses market analysis to find hotspots where property prices are most likely to go up. We also utilize our insider knowledge to help you decide on the specifics.
If you opt for Think Investment Realty, your first home will have to pass our rigorous rating system. We use a custom algorithm to rate properties by profitability. This is why we can recommend low-risk investments.
Many first home owners lose money, and create extra stress at an already stressful time because they choose the wrong builder and don’t know enough to get a fixed price contract. This makes an enormous difference when getting your first home because you normally have limited funds. A fixed price contract means someone has gone through the contract and replaced all of the Prime Cost (PC) items to fully costed items.
A contract end price can vary up to $50k on this issue alone. Jack and the Team at Think Investment Realty are experts at this and never allow a contract to be signed until every hidden cost is found and listed.
The problem most novice first home buyers face is they get an approval from the bank on the price they think they are paying for the property, and then the ‘variations to contract’ start. The cost of the Tiles, Fixtures and fittings, electrical plan, plumbing and fixed items like dishwashers, air-conditioners etc are usually all approximate prices, and normally are quoted far below the cost of the items you want.
The bank won’t change the loan approval amount, and rarely do the first home buyers have the shortfall of funds that are needed to complete the property. A nightmare! – Think Investment Realty understands exactly what is needed to ensure a smooth and hassle free build and holds our clients’ hands through each and every step of the process.
Additionally, we can help you work through hurdles such as paperwork, bank approvals and fixture and fitting selections. Why not make use of our experience and prestige in the field?
What Happens Next?
Karen’s first home suited all of her needs. But over time, Karen will decide to move up the property ladder or buy additional properties for investment purposes. We plan to stand by her every step of the way.
Working with Think Investment Realty can be a permanent arrangement. We’ll be happy to help you build your investment property portfolio.
Purchasing your first home can help secure your future. But the fear of failure might be standing in your way. Because you’re new to the world of property investment, you may feel overwhelmed and unsure.
If that is the case for you, we are happy to discuss your concerns. Drop us a line and we will help you see things more clearly.
