Hints and Tips for home Buyers

Are you a first home buyer? Then go to my dedicated FHO page!

First Home Owners School

Applying for a new home loan? Avoid taking on any new financial debt at this time. You don't really need the new car! New debt can complicate the home loan application process.

Location Location Location! Don't move too far out of the city or town centre. Areas closer to the CBD will improve in value quicker than those further away - and you need good growth to make your returns profitable. If values double every 5 years it is much better for your cost recovery than ten years!

Beware of your emotions taking over your head! Have a check-list of what you want to do or are able to afford with you to temper any emotional over-reactions. You have a budget so don't get carried away by the excitement!

Be careful not to overcapitalise through the improvements you have planned. You could spend $20000 and only see $10000 in price rise because of the location of the property.

If you are considering buying an older house for renovation, consider getting a structural engineer's report. It is much better to identify any big problems before you lay down any money!

Find a local real estate agent and ask them to guide you to the types of houses that have been bought for renovation in the area you are investigating.

Find out what the common renovations that are occurring in your area before starting work on your property. If you spend money on the wrong thing then you are going to waste money! Say you add a bedroom when everyone else is upgrading kitchens! Your $30000 may only add $15000 in price rise!

So you have decided on what type of house you want and where you want it to be located. Make a list of the home opens that you think will meet some of your needs and visit them with your list. Take a camera and note pad to record the important issues for each property - don't ask too many questions or give away too much to agents or owners present at the time. Also remember to visit the property a second time to catch the things you missed the first time. Properties will quickly stand out as potential purchases when you start checking your lists later.

For people new to the property search the abbreviations in adverts can be a little confusing.
To help here is a list of the most common:

S: Single story
D: Double story
L: Loft
3x2: 3 bedroom, 2 bathroom
4x2: 4 bedroom, 2 bath
g/r: games room
h/t: home theatre
a/r: activity room
c/r: computer room
st: study or home office
alf: alfresco
sc/p: single carport
dc/p: double carport
g: garage
d/g: double garage
t/g: triple garage