Stepping into the housing market and investing in your first home is an exhilarating yet daunting experience. You’ve been saving and are now ready to make the purchase but don’t know where to start? There are a lot of aspects you need to consider, which can sometimes be forgotten. These 3 big tips for those building their first home, specifically in Adelaide, will give you plenty to think about as you prepare to make the big decision.

Sticking to your budget

Setting yourself a budget and sticking to it is critical. Not only does this reduce stress later down the track, it also allows you to really focus your research on your price range and not spend thousands of excess dollars. Determining how much you have to deposit, 20% being the goal, puts you in the perfect position when it comes to acquiring a loan.

Here in SA we have the South Australia First Home Owner Grant. Whether you are looking to buy your first home in and around the CBD or rural real estate, you may be eligible for a grant of up to $15,000.

Some of the requirements to access the grant include;

• The property value is no more than $575,000
• You must live in the home for at least 6 of the first 12 months of ownership

The hidden costs

As you’ll quickly learn when entering the housing market, there is always more than meets the eye. You might think it’s as simple as getting a loan and paying off your house, but there is so much more to consider. There are several hidden costs that people often forget about that can cause financial pressure and stress.

1. Stamp duty is a tax imposed by the government which is calculated based on your property value.
2. Depending on the value of your deposit or if you are considered a high risk borrower, you may have to pay Lenders’ Mortgage Insurance (LMI)
3. Mortgage registration & transfer fees, are paid when a mortgage is established, and to transfer the title of the property to the new owner, respectively.

This is only an insight into the hidden costs you may encounter with your home purchase so make sure you are fully informed so there are no surprises along the way.

No such thing as too much research

As a first-time home buyer, you may find it quite overwhelming learning just how many houses there are out there. Lucky for you there are an abundance of resources you can use to narrow down what you are looking for.

Local newspapers as well as real estate websites are perfect for helping you narrow down where you want to buy. Whether it be an existing home or a house and land package you are after, knowing everything that is available out there is key to making the right choice. It is worth considering seeking professional help when conducting your market research, if you feel this is appropriate. This initial research will also help you identify and understand some of those hidden costs that may slip your mind.

All in all building your first home is a huge achievement. Now it’s a matter of making sure you know everything you need to in order to limit the number of surprises along the way. There are plenty of experts out there who can assist you, particularly in determining your eligibility for Grants. Knowing all this information before you make a monumental life decision will reduce the element of surprise and keep you on track to achieving your dream of building your first home. At Lofty Building Group, your needs are what matter most. Say goodbye to uncertain timeframes, excessive costs and subpar quality when you join the Lofty family.

It all starts with a conversation. Get in touch with us today.