Hi guys
I am looking to buy my first home at the end of this year and I was just wanting to find a guide/list of things I should be looking at all from Scratch.
I do have a few qantas points credit cards ($0 outstanding, I always pay them off) when would be the best time to close these?
When should I apply for pre-approval? I literally have zero knowledge so wanting to learn as much as possible over the next 6 months.
Any help will be much appreciated.
Thank you.
That's one of the funniest things i've seen.
lmgtfy.com
Try this for maximum impact, the other link gives away the joke.
What's this "Google" that everyone always mentions?
It's like duckduckgo for Apple users.
people use duckduckgo to watch porno.
Was more of after personal experiences as well but yeah keep the banter going. doesn't hurt
Everyone's circumstances are different. Use a broker if you like, they will walk you through it.
do you have any recommendations for a broker?
I have a very specific recommendation, however he is on the gold coast so won't be any good for you unfortunately. He made life very easy for us when it would have been difficult conventionally, and got us a very good rate considering. He is with Aussie, but I'm sure they vary.
You said you have "literally have zero knowledge", you need to know the basics before you touch on more specialised or personal stuff. The rules and laws are the same for everyone.
It's like a 5yo wanting mum to teach him complex numbers before even knowing that 2+2 is.
It's like a 5yo wanting mum to teach him complex numbers before even knowing that 2+2 is.
i agrees.
Should have mentioned that in the OP
I would visit the bank and speak to the home loan manager. Make an appointment and speak about your situation, explain what you want to do & see if they will even give you a loan based on your income. Then start searching.
I think this is the first thing you should do.
Find out how much you can literally borrow (with FHOG if eligible) and then work researching your home with your known expenditure
Thanks mate. Good starting point. i'll go to CBA Monday.
Don't. Just don't. Not until the coronavirus panic disappears.
Don't go strata unit if you can help it.
I do have a few qantas points credit cards ($0 outstanding, I always pay them off) when would be the best time to close these?
When the mortgage broker/lender advises you to
When should I apply for pre-approval? I literally have zero knowledge so wanting to learn as much as possible over the next 6 months.
When you start seriously looking/are about to buy
TL;DR - Just buy and read the Barefoot Investor.
You could be a young and single person earning $110k per year without any debts or expenses.
Or you could be an older married father of three, few debts, and earning $60k per year.
…both could be first-home buyers, so yeah, I agree that situationally it affects things a lot.
The rule of thumb is:
- Above all else focus on your: Career, Health, Relationships
- close all debts first
- build up savings to live off for 1 year (or 3 months minimum) expenses in-case you lose your job
- then separately save the 20% of the home loan, do not give a care about FOMO
- when buying a property the order of importance is (Price, Location, Land Size, On-going costs, House Quality, Bonus Luxuries)
- buy a modest home that is within your means to live in, not to invest.
- Invest heavily into your Superannuation, then into the Stock Market.
When you're old and your health is waning and you lost your income:
- the House being paid-off is going to ensure you don't have huge costs to live like Rent.
- the Superannuation is going to help pay for your living and expenses.
- the Stock Market investment is going to ensure you are ahead of inflation (which compounds 3% yearly)
Remember, every human that was born in history and every human that will be born in the future dies with having (few-some-many) regrets. The majority of regrets are from things we DIDN'T DO rather than what we did. It's no surprise, since people can justify their own flaws/actions, but it is exponentially harder to justify our deficiencies or missed opportunities. So I think the conventional wisdom is to take risks early, learn and grow. But to keep your humility and be rational.
Not sure about the investing heavily in super thing. I understand the less tax, but still.
thanks mate, i'll get this book.
True about super.. I work in super and can't understand the people dipping into super these days even though they are working and can support themselves.
DON'T buy in a strata or community group.
DO get a building inspection.
I was set on buying an apartment but my God it's become the property that only the kids of mega wealthy Chinese can afford. Sure it's cheaper than a house but what are you getting? A box that's not even a quarter of the size, no backyard or land to sit on, and a hefty $4k a year in strata fees. After 10 years you'll have wasted $40k in strata. Building starts to cave in? Oh you're screwed either way.
If you google "Guide for First Home Buyers", it gives you a a list of range of reliable sources from Banks, real estate, broker and Gov.