Buying your first home
Conventional wisdom says that buying your first home is a relatively simple task. It’s exorbitantly expensive, sure, and it may take a long time, but it’s still easy to understand. You simply spend years working hard and saving money, eventually piling up enough to put down a deposit, then you buy.
There might be all sorts of unexpected costs that seep into the home-buying process, and you need to be ready for surprises.
But is this really all there is to it? For first-time home buyers, it’s good not to be too confident. The reality is there might be all sorts of unexpected costs that seep into the home-buying process, and you need to be ready for surprises. This means having the time, money and strength of mind to deal with whatever comes up.
The cost of the house is only the beginning
Even if you have a budget for the deposit and all the mortgage repayments, buying a house can still be expensive. News.com.au recently reported that many of the smaller costs involved can go overlooked, such as buying coffee and lunch every day you spend house-hunting. Over time, these add up.
“The reality is that there are several miscellaneous expenses that you may have omitted from your budget spreadsheet,” Finder spokeswoman Bessie Hassan said. “If you haven’t accounted for the wide spectrum of costs needed to secure property – think coffees and takeout lunches, not to mention the time investment required for property search – then you may have missed the mark as far as budget planning and savvy property buying is concerned.”
Drawing up a truly comprehensive budget
With the “hidden costs” issue in the front of your mind, you’ll know to plan ahead for the full expense of buying a house, not just the price tag. RealEstate.com.au recommends drawing up a budget that includes all the ancillary items – stamp duty, legal fees, building inspections, loan application fees, title, insurance and so on. Once you’ve done that, you’ll want to set aside yet more cash for those coffees and lunches that come along.
When you put everything together, the process of saving for a house and buying it is actually not simple at all. With this in mind, you may want to find a mortgage broker who can help you plan for everything.
A good broker can show you the way
If you’re looking for guidance as you plan to buy a house, you can’t go wrong teaming up with us. We have access to over 40 lenders, and we’re here to help you work through the confusing process of budgeting and buying.
Contact the team at Premium Portfolio Finance and we’ll help you evaluate your options and choose a financial option right for you.
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