How much can you really pay
Talk to your financial advisor and find out how much you can afford to pay on your current incomes. You must be realistic here with a conservative eye. Then build your deposit by saving regularly. Banks like to see financial discipline. Remember to stay within your budget and don't forget to allow for the many upfront costs like stamp duty.
Sort out your debt
If you have any debts, it pays to sort them out before looking for a home loan. While low interest debts like student loans are OK, multiple high interest credit card debts can be a problem, so consolidate them and show you can manage your debt payments.
Research the market online
Please research the location you want to buy your home and research home loan requirements. Then do more research and then research again. Market knowledge will save you time and money in the end. The internet is a great place to begin your research. Look at home loan rates, deposit percentages, suburb profiles, look at transport in and out, crime rates, housing styles and costs, schools, shops, community facilities, council rates and services, property values and availability of properties in your price range. Make notes of everything and talk things through with your partner. Make sure you agree on the key issues.
Go to open inspections and auctions to see what is available for your budget
Once you know where you want to live and how much you can spend, have a look at places that are selling at the top and bottom of your price range. That way you can see where the value is. Attend an auction or two, and get a feel for how the decision making about price and value all boil down to a few minutes in front of an auctioneer. Pretty soon you will get a feel for the market and maybe you can recognise a bargain that other have not recognised. Timing is everything. Be diligent and be patient, but move quickly when you know the property is right for you.
Find a good real estate agent and talk over your options
Real estate agents are professionals who help people buy and sell properties all the time. Most are honest, knowledgeable and will help you find what you are looking for, particularly if you are well prepared with market knowledge, and particularly if your funding is in-place.
Take it slow - don't buy the first thing you see
Take the pressure off yourself and take time. What-ever-you-do, don't be tempted to be rushed into making a quick decision or buying the first place you see. If you have done your research well, you will find an ideal place for your budget, but take your time.
Get a building and pest report
A building and pest inspection may seem like wasted money if you already love the home you have chosen. But it pays to be sure that there are no hidden faults that could become costly in the years to come. It is money well spent.
Read about home ownership and real estate strategies
Buying a home is a serious financial commitment. Get it right and you are on your way to building your financial future for you and your family. Get it wrong and things are not so rosy, so study how successful home owners do it. How people like you can build a property portfolio over time by wise investment decisions.
Buy with your head, not just with your heart
This is a hard one. Make sure that you are clear eyed about this decision. While you must be able to live with the home you have chosen, and grow to love it as it becomes a focal point of your life, you have to be able to afford it and afford to maintain it. If you are buying a home with your partner, make sure one of you crunches the numbers to make sure the home will make financial as well as emotional sense.
Take small, considered steps as you climb the real estate ladder to get to your dream home
You will probably own several properties in life, each suitable to the stage you are going through. Let's say there are three basic ones and call them first home, family home and retirement living. Each of these stages may have more than one home as you move around for work or your family situation changes. So don't be too quick to look for your “forever place”, rather look at each purchase as a stepping stone to the next where you build your equity and the value of your real estate holdings steadily over time.
