Owning a home is the great Australian dream, and what many people don’t realise, is that home ownership is within closer reach than they may think. At Metronest Homes, we specialise in land and home packages to suit every family, lifestyle, and budget. If you’re saving to buy or build your first home, there’s a few key pieces of advice that you should keep in mind as you prepare to enter the world of home ownership.
Understand Your Finances
Before you start, it’s important that you are in a position to be approved for a home loan. Most banks and lenders look for financial stability and job stability, so take the time to review your income and assets, as well as your existing debts and monthly expenses. Having a good understanding of your financial position will allow you to know how much you can afford on a monthly mortgage payment, and therefore how much you can spend on your new home.
Take Advantage Of Government Grants
There are all kinds of great programs and grants available to assist first-time home buyers in both metropolitan Melbourne and regional Victorian areas, so do your research and take advantage of any that may apply to you. An experienced home builder, especially one that specialises in house and land packages for first home buyers will be able to offer you all the information you need, and they may even be able to help you apply.
Investigate All the Costs
There are many expenses involved in the path to home ownership, so it’s important to understand what these might be.
- The purchase price – Unless you have the funds to pay for your home, you’ll need to take out a loan, and lenders often ask for a minimum 10% to 20% deposit.
- Application fees – Loan application fees are often forgotten, but they generally cover credit checks, property appraisals and other admin done by the lender.
- Lender’s mortgage insurance (LMI) – If your deposit is less than 20%, you may need to make this payment to your lender, which covers them in the instance you can’t repay your loan.
- Government charges – Such charges include stamp duty and transfer fees, which will vary depending on where your property is located.
- Conveyancing costs – This covers your real estate conveyancer or solicitor, who’ll prepare the necessary paperwork and conduct the settlement process.
- Moving expenses – This may include renting a truck or hiring professionals to help you move.
Whilst it’s important to know what upfront costs you need to cover, it’s also a good idea to research the ongoing costs you will need to continue paying. Ongoing expenses could include such things as council rates, utility costs, building and contents insurance, and strata fees if part of a development.
Research Property Locations
When looking at different suburbs and locations throughout Melbourne, you might want to think about:
- Property prices in the suburbs you’re looking at – it might be much more affordable to build rather than buy an established home.
- Distance from family, friends, and work.
- Off-street parking, local schools, shops, and transport.
- Financial growth potential in your chosen suburbs.
- Proposed developments in the area.
It’s important to build a home in a location that has all the amenities you need close by to suit your lifestyle and work commitments. If you have children or you’re planning on starting family in future, close proximity to parks, playgrounds, schools, and childcare should be a top priority.
Don’t Assume It’s Too Expensive to Build a New Home
A brand-new home could be well within your budget! Metronest Homes offers an impressive selection of contemporary, spacious, and luxurious homes that are surprisingly affordable for most first home buyers. Enjoy stamp duty concessions when you choose to build rather than buy an existing home for sale. For further savings, you might also consider fixed price house and land packages, which also save you the time and hassle of finding and securing that perfect piece of land in the right location.
If you’re looking to buy or build your first home, it’s one of the biggest purchases you are ever going to make. Take your time, do your research, and ask questions to ensure you can make the most informed decisions.
Looking For An Affordable Custom Home Builder In Melbourne?
Metronest Homes are well established new home builders in Melbourne. We carefully choose the land we invest in and pride ourselves on contributing beautiful new homes to this great city. You can expect the highest quality materials, impeccable workmanship, and incredible inclusions in all of our innovative home designs. Reach out to us online today to start the journey to home ownership.
