The economic effects of COVID-19 are hitting every industry, hard. That includes the property market.
While this isn't ideal for homeowners and sellers, it presents first home buyers with a very rare opportunity.
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As housing prices are expected to drop seven per cent over the next year, this unprecedented time may indeed be the perfect chance for anyone fortunate enough to still uphold a stable job and has some savings behind them, to buy their first property.
But there are a few things you need to consider first.
Matt Spooner, Founder and Buyer's Agent at Buyer's Market Sydney, spoke to Mamamia about the exact questions you need to consider before you begin your first home hunt.
1. Are your finances in order?
Before you even begin looking for the house of your dreams, you need to get your finances sorted.
As Matt explains, most people will need to borrow money to purchase a property, so it's a good idea to speak to an expert. They will walk you through your financial position and answer any questions you have about entering the property market for the first time.
“In the early stages, I'd recommend meeting with a savvy mortgage broker, who can give you a good understanding of your financial position, and let you know exactly how much you can afford to make a purchase for,” he advises.
“This broker should be someone you can trust, and you feel comfortable working alongside. A good mortgage broker will always take the time to clearly explain concepts to you, and make sure you are comfortable before proceeding with any finance applications.”
2. Are you eligible for government loans?
The government has schemes to make home-owning possible so it is imperative you check whether you are eligible for them.
You can do this through speaking to a mortgage broker, who will do the work for you and suss out whether you're eligible to receive the First Home Owner Grant, or you can do the research yourself.
“You should ask your mortgage broker to work with you to assist you in understanding the different types of loans available to First Home Buyers; the different Federal and State Government incentives available to First Home Buyers that you may qualify for; the different ways of providing security for a loan, for example deposits, guarantees and the like; and, the process of applying for 'Pre-Approval,'” Matt explains.