How to Prepare to Buy Your First Home

Purchasing or building a new home is a significant milestone and one of the most important financial decisions most Australians will make. At Wilson Homes, we understand that embarking on the journey to your dream home can be both exciting and overwhelming, particularly if it's your first time. This guide is divided into three sections: financial preparations before homeownership; current property market insights and future projections; and highlighting the significant costs to consider when purchasing or constructing property in Tassie.

FINANCIAL PREPARATION FOR BUYING PROPERTY IN TASMANIA
CONDUCT MARKET RESEARCH

Initiating market research is an excellent starting point in your property search, but where should you begin? A key question to ask yourself initially is whether you prefer to build or buy a home for personal residence or investment purposes. Having a clear objective like this can streamline the research process and provide a better understanding of your desired location. Through research, you can:
•    Gain insights into preferred locations
•    Understand recent market trends in the area
•    Assess affordability based on your preferences.
Explore online resources, consult with real estate agents, seek advice from experts on home purchasing, attend property inspections, and explore available options in and around your local area.

DETERMINE BORROWING CAPACITY

In the early stages of preparing to buy a house, it is crucial to assess your borrowing power. This helps in identifying properties that fit your budget and those that do not. Factors influencing your borrowing capacity include:
•    Income and financial commitments such as rent, utilities, insurance, loan repayments, and tax bills
•    House deposit and additional savings
•    Credit score and credit report.
To get started, you can utilise a Borrowing Power Calculator, which provides an estimate and examples based on income, expenses, and loan details.

MANAGE YOUR DEBTS

Clearing any outstanding debts, such as car loans or credit cards, before purchasing or building your first home is beneficial in the long run. Controlling your debts offers the following advantages:
•    Enhances your borrowing power
•    Saves on interest
•    Strengthens your home loan application.
While saving for a house may be challenging, getting your debts under control is one effective way to expedite the process.

CREATE A BUDGET AND SET SAVINGS GOALS

Regardless of the type of home you aspire to own, saving for a house deposit is necessary. Having a clear savings goal serves as a great motivator, preventing unnecessary spending and enabling you to allocate your hard-earned money towards your deposit. Establishing a budget to set aside funds weekly or monthly helps determine the amount you can save for your deposit. 
A budget acts as a framework for tracking every expense, and not having one can lead to challenges while working towards your future home.

EXPLORE HOME LOAN OPTIONS

When seeking the best home loan deal, remember that the interest rate plays a crucial role. Since a home loan is a long-term commitment, it is essential to find one that suits your situation and allows for comfortable mortgage repayments. At this stage, consider the following:
•    Compare home loan rates and reach out to at least two different lenders to explore personalised loan options based on your circumstances. Even a slight difference in rates, such as lower than 0.5%, can lead to substantial savings in the long run.
•    Engage a mortgage broker to assist you in finding suitable home loan options.
•    Obtain pre-approval to purchase. Lenders can pre-approve a loan if you have evidence of your current financial situation to assess your ability to repay the loan.

CHOOSING THE RIGHT TIME TO BUY OR BUILD A HOUSE

Selecting the right builder is a crucial step when planning to build a house. Since the home construction process is lengthy and complex, it's important to carefully consider your choice of builder. Here are key factors to evaluate when making your decision and why Wilson Homes meets these criteria:
Credentials: Wilson Homes boasts over 30 years of experience in building homes for Tasmanians. They are backed by the NEX Building Group, providing a solid foundation of expertise and industry knowledge.
Customer Care: Wilson Homes prioritises customer satisfaction and aims to create not just a home but a thriving community. Our dedicated state-wide CustomerCARE program is designed to give you peace of mind from the moment you get your keys and into the future. Additionally, they provide a 30-year structural guarantee, ensuring the long-term durability of your home.
Building Style: Each builder has a unique design style. Wilson Homes offers a range of home designs that showcase their distinctive craftsmanship. Explore their portfolio to witness the exceptional quality and attention to detail they bring to their projects.

Ready to embark on your home building journey? Get in touch with us online or call our friendly team on 1300 595 050 and find out how Wilson Homes can help you build the home of your dreams.