Just how hard is it for first home buyers to get into the market? If you open a weekend newspaper or hop onto property investment social media pages, a barrage of contradictory opinions on the subject will present themselves.
As May is Aviser Finance‘s First Home Buyer month, we thought it timely to present two real-life test cases: two pairs of first home buyers who have managed to take their first step onto the property ladder (courtesy of hard work, and a little help from Aviser).
Meet Maybel, Ray and Chloe (the very cute fur kid). They recently settled their first home, and were happy to sit down with Aviser and tell us about their experience.
Aviser: How long were you looking before you purchased a property?
Maybel & Ray: We were in the market for roughly around 6 months before we purchased our property.
A: Were you concerned that you might not be able to buy a property?
M & R: The thought had crossed our minds more than a few times while we were searching. Of course, there was the common issue of housing affordability for young couples like us to deal with. We thought to ourselves “there will always be someone else with more money than us”! In fact, we were outbid at many auctions during our time looking at properties. This was quite discouraging. We also did not have any past experience with property – so a lot of our decisions relied on the advice of family, friends and the internet, which of course was confusing and sometimes conflicting.
A: Why did you choose to buy ‘off the plan’ rather than a ready-built property? What helped you make your decision?
M & R: One of the toughest issues we found when trying to buy our first home was that real estate listings were not the most accurate when it came to their price estimates. There were times when we would become quite emotionally invested in houses that were listed within our price range, only to have it sell for $100,000 or more over the originally quoted price.
It was by pure luck that we inspected a newly built unit – and although we did not like the particular design of that unit, we did keep in touch with the private builder who was starting on another project later that year. This builder was very keen on his next project and when giving us a tour of his newly built unit, we could tell that he was very proud of his work. To take that much pride in his work meant to us, that he would probably try his best to do a good job. We also liked the fact that with a brand new project, and that we were given the option of choosing our own finishings for our own home. Finally, the fact there was clarity with price as the amount was important. It meant we didn’t have to go through the process of bidding against others. All these factors helped us decide to buy off the plan.
A: How important was organising finance for you – and how early on in your buying process did you arrange finance?
M & R: The organisation of our finances played a major role in determining what we could and could not afford. We also chose to have our finances sorted out early on in our search because we knew it would take time to find a home loan that would suit us, and to sort out further documents like unconditional approvals from the bank.
A: How did Aviser Finance assist you in your journey to first home ownership?
Aviser Finance were fantastic to work with. We were both new to the house buying process and soon realised that it was much more complicated than we originally anticipated. Not only were we out there physically looking for that ‘perfect’ first home, we were also tasked with having to lodge documents we’d never heard of, with having to read through Contracts of Sale that sometimes didn’t make much sense, and to make very important decisions that involved a lot of money.
Tonina and Martin from Aviser Finance not only took the time to physically meet with us, but to talk to us and learn about who we were as a couple. With this information, they were able to suggest the best home loans to fit our lifestyle and personal plans for the future. Through countless telephone calls and emails, they took the time and effort to carefully explain banking terms we were unfamiliar with, outlining important steps that we needed to address as well as explaining what was happening each step of the way. They assisted us throughout the process from start to finish: looking through our financial position, applying for a suitable loan, lodging our official First Home Owner’s Grant and ultimately settling. The fact that we had Aviser Finance reassuring us throughout the process of purchasing our home made it a lot easier, and a lot less daunting than we imagined.
Aviser: Did your expectations about the kind of property you’d ultimately buy change much over the period of searching, negotiating and settling your first home?
M & R: Most definitely. At the start of our search, we were predominantly looking at houses that we considered our ‘forever home’. Houses that we could envision ourselves living in for the next 30 years with a family. We particularly loved the older Victorian era of housing design with cute little backyards. However, with the financial restrictions we found ourself facing (paired with increasing market prices) meant that we were pushed further from our desired suburb locations and moving too far away from the city for our liking. Location had always been a key factor we prioritised when looking for a first home. In the end, we did compromise on the ideal size of our first home. We were, however, able to buy a house in a location we loved.
A: What are the biggest challenges as a first home buyer?
M & R: We found that our biggest challenge was becoming emotionally invested in certain houses only to miss out on them in the end. The search for our first home was both a physical and emotional journey. We found ourselves spending most week nights looking at real estate listings and the weekends visiting open for inspections only to be outbid at final auctions. This itself became quite exhausting.
A: If you had one piece of advice for first home buyers aiming to get into the market, what would it be?
M &R: Being patient is very important when looking at buying your first home. Taking the time to attend open inspections, talking to agents and sussing out the neighbourhood will give you a better idea of what you are buying into. Patience will also make it easier to emotionally deal with the properties that you miss out on because you know that one day you WILL find and buy a place that you will call you very own home.
Meet Sandra and Carlos. They’re looking forward to moving into their first home, purchased as part of a house and land package.
Aviser: How long were you looking before you purchased a property?
Sandra and Carlos: Approximately 6 months.
A: Were you concerned that you might not be able to buy a property?
S&C: We were concerned that our deposit may not have been substantial enough, as we had not been saving for long after coming back from a holiday in Europe.
A: Why did you choose to buy land and build a property rather than purchasing a ready-built property? What helped you make your decision?
S&C: When we first sat down with our broker – Aviser Finance – and discussed our options we were initially looking at buying an existing property. We realised that the government provided more support for a house and land package. We felt more comfortable with this option as again, we were unsure if our deposit was sufficient.
A: How important was organising finance for you – and how early on in your buying process did you arrange finance? Did it help you understand what you could afford?
S&C: As soon as we decided to look for a house, we sat down with Aviser Finance and talked about our options. This was the biggest concern, as we didn’t want to plan for something unless we were approved by the bank.
A: Did your expectations about the kind of property you’d ultimately buy change much over the period of searching, negotiating and settling your first home / land asset?
S&C: We did want to buy an existing property so we could be closer to the CBD, but we realised building in Truganina wasn’t too far from where we were initially looking and long term this would be a good option when we eventually look to sell the property. Also the assistance from the government guided our decision to build in a new area and also the fact that we could create a home to how we wanted it.
A: What are the biggest challenges as a first home buyer?
S&C: Saving a deposit and deciding where to buy and build.
A: If you had one piece of advice for first home buyers aiming to get into the market, what would it be?
S&C: Start saving as early as you can and carefully select your location based on what you plan on doing in the future eg: work, children, schools. I would also recommend talking to people who have been through the same property journey (house and land OR existing property) as they will have been through similar situations and they will have helpful tips and knowledge around the process.
Are you a first home buyer? Aviser Finance are here to help you in your home ownership journey. Please email info@aviser.com.au to begin a discussion – let our experience guide your first steps into property ownership.