How to get a foot into the property market

Those dreams of owning your own home could become a reality.

If you are hoping to get into the property game, you have probably been told by your dad, auntie or friend that now is the time to buy – “everyone is broke, you can pick up a real bargain now” they say, but is it true?

Lloyd’s Real Estate’s Lloyd Rees said despite the popular belief that everyone is selling their houses for next to nothing at the moment due to factors such as the weak economy, fact is there is not a flood of new listings of homes.

“The property market corrects itself all the time with fluctuations, but in my opinion there is never a good or bad time to purchase a property. Whatever the economy, you still have to have somewhere to live,  so purchase the home you can afford, when you are ready,” said Rees.

Check out Rees’ top three tips to help you go from tenant to owner:

1.Rent or roots?

Renting might seem cheaper on a monthly basis, but buying is the way to go long term.

Do you want to be an eternal renter or own your own home where you can put down roots?

Comparing rental prices with bond repayments often leads many people to rent, as the type of homes you can rent in comparison to the home the same amount on a bond repayment can buy you is vast, but it’s not yours and you are paying someone else’s bond.

Rather make the decision to down scale and invest in your own home.

2. Rattle your piggy bank

Get out all of your piggy banks and make sure you have enough money for those hidden costs too.

The first step before entering into the property market should be saving for a deposit.

Trying to get a bond on a starter salary can be difficult, so it’s a good idea to apply for a pre-qualified home loan so that you know how much bond you would be able to obtain.

Remember that you also need cash available to pay the transfer duty and costs associated with transfer – check out this cost calculator here.

3. It’s just a stepping stone

No matter how big or small, nothing beats that feeling of owning your own home. 
Photo: Networthy

Your first home may not be your dream home, but it is often a stepping stone to something better.

When you are ready to buy, stay within your  budget, taking into account fluctuating interest rates,  and buy a home in a good area with growth prospects.

 

 >> Meet the top players in the North Coast property industry. See our Property People feature.

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  AUTHOR
Elana Geist
Journalist

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