Deciding to enter the property market is a huge decision, so it is important to make sure that you are financially ready to take the plunge.  Proving that you can make the required repayments is a necessary evil to make the transition as first home owners as seamless as possible.  Here are our top five tips to help you on your way when buying your first home.
 
Tip 1: Make Saving a Habit
Having a regular savings plan will make it easier to get a home loan.  Banks need you to prove to them that you are responsible with saving.  Aside from that, you actually want to prove to yourself that you are ready to be a new home owner and this means save, save and save!  After all, saving as much as you can will empower you to know that you can do this.  Be sure to deposit or set up a reoccurring transfer to your savings account each pay cycle.  Making regular saving a habit will certainly tell a bank that you are ready to make the move and become a first home owner.  

Tip 2: Budget Wisely
When reviewing your budget, be sure to include one-off expenses, such as:
  • Initial deposit
  • Loan repayments
  • Stamp duty
  • Legal fees
  • Moving costs
Then comes utility bills and furniture.  Not sure where you should start?  Begin by keeping track of your current expenses and when they are paid.  We also have a range of calculators that will guide you with getting familiar with your home loan repayments and budgeting.  As a first home owner, you will find these calculators particularly useful. 

Remember – a bigger deposit means a smaller mortgage so look at your expenses in fine detail and try to find a way to go without some luxuries in life…you will be amazed at how much you can save by cutting back just a little.
 
Tip 3: Know your Borrowing Capacity
Once you have prioritised your spending and start to see the savings grow, you will be in a better position to set up a meeting with your bank to discuss loan structure options and your borrowing capacity.  Your bank or lending provider will give you an indication of the amount of money you can borrow and will help guide you with how much more you need to save to be able to afford your first home.  Once you have this information, the fun part begins…searching for your new home.
 
Tip 4: Find a Home that you can Afford
You want the perfect home, in the right location, we get it.  Depending on where you are looking to buy, you may be eligible for further stamp duty savings.  Be sure to do some research as to what your entitlements are when purchasing a new home or a vacant block of land to build on or speak to one of our friendly New Home Advisors.  Refer to the link in Tip 5 to learn more about what your state or territory offers.  In addition, you may want to get familiar with the HomeSolution by Metricon home and land options available for first home owners.

Beautiful kitchen: Barton display, Werribee VIC
Spacious living: Barton display, Werribee VIC


Tip 5: Apply for the First Home Owner Grant
The First Home Owner grant is a one-off grant that first-time home owners may be eligible to receive.  In regional Victoria, for example, the grant will double to $20,000 from 1 July 2017 to 30 June 2020.  Note that each state and territory will have varying grant amounts for first home owners.  For further details and information on how to apply, please see the first home owner grant website.
 
As first home owners, you’re probably wondering how you will ever get your foot into the property market.  That’s where you’ll find comfort in knowing that there is a grant to assist you.
 
There is a host of information and other useful tools available, such as our first home buyer resources, which you can access at any stage during your new home journey.  At Metricon, we guide you through the building process, so come along to a HomeSolution by Metricon display home to make your dream of becoming a first home owner a reality.