Your first home is what gets you on the property ladder and can either set you up for the future or hold you back from your long term dream property.
For some, your first home will not be the one you raise your family in, but it is another step in the right direction and if you make the right decisions with your first house, you will be able to secure your ideal family home in an area you love.
Generally speaking, it is natural to have emotions running high when you make that first purchase, as the house hunting and finance process can be exhausting. Try to avoid this by taking your time to research, seek professional advice and make a decision based on your budget and lifestyle goals.
Months, even years of savings could all be sacrificed for a property you buy that loses you money. Alternatively, a clever first purchase that grows in value could leave you never having to save money again for a deposit on your next home.
REIWA President Damian Collins said the first home you buy is the most important because its capital growth is how you create equity to be able to afford to trade up to the next home.
“Most people buy at the lower end of the property market for their first home and through their lives, many move into higher price brackets as their family and income grow,” Mr Collins said.
The first step to achieving your house goals is saving a deposit for your first property purchase. How much you save can ultimately affect what, where and when you buy, as well as how much you are able to borrow from the bank. All of these factors will point to you being ready or not to buy a property that will give you the best first start in the property market.
Think long term, not just about the appeal of the property today. The best way to set yourself up is through your first home purchase, this again comes back to ensuring your first property is a smart investment decision.
“Quite often existing homes that are a little older in established suburbs grow in value more than brand new homes in the outer suburbs. It’s nice to have everything brand new, but remember, the first property is the stepping stone to your dream home,” Mr Collins said.
It is important to consider your long term goals, as many people strive to raise their families in nice communities close to schools, parks and recreational facilities. Get yourself used to the locations you like living in and where you can see yourself raise your children or if you plan to in the future.