Milestone Purchases, Part 1: Buying your family’s first home

Many of the milestone moments in your life bring a major financial component along with them. For example, your first time enrolling at university will probably come with a hefty tuition bill. Getting married is a major expense, and having your first child will inevitably bring many expenses in the coming years.

Buying your family’s first home is no exception to that. Your first time buying a house is an important gateway into adulthood – it’s a chance to establish a home base for your family, taking a new space and making it all your own. But it can also be staggeringly expensive, demanding a great deal of financial planning to lay the groundwork.

In Part 1 of this series on life’s major milestones, let’s explore the challenge of buying that very first home. What do you need to know about the process? How will you survive the ordeal?

Diving into the property market

The chance to purchase your family’s first home is exciting, but it can also be prohibitively costly. Of course, there’s the option to get a home loan that will help you with financing your purchase, but even with that possibility, your first home will still be expensive.

It might be necessary to widen your family’s property search. You might have a top choice for a neighbourhood where you’d absolutely love to live, but it might not be in your price range, or there may just not be a home available there at the right time. If you’re willing to consider a wider array of areas, at varying price points, you might have an easier time finding the right price.

It will also be easier to get a deal done if you’re willing to compromise on other factors besides location. If you’re willing to consider a smaller property than the one you favoured originally, or purchase a place that still needs a bit of renovation rather than a fully finished home, you might be able to find a bargain.

Planning for the financial burden ahead

Even if you get a great deal on your first home, it’s still going to be a sizable burden to pay for it – probably the toughest thing you’ve ever had to do from a financial standpoint. If you’re worried about the challenge that lies ahead, it’s best to start saving early. The more money you can put away, not only for that first down payment but also for paying off the mortgage ASAP, the better.

You also want to get the timing right on your living situation. The worst thing you can do is be paying for two homes at once unnecessarily, such as by renting your old apartment and paying the mortgage on your new home at the same time. To maximise your savings, try to move seamlessly from one living situation to the next – and in addition, consider how a first home buyer loan can help pad your finances.

We can answer all your questions

Buying your family’s first home isn’t just expensive – it’s complicated as well. You’re sure to have countless questions about the financial details. How much can I borrow? How long will my mortgage take to pay off? The list goes on.

At Mortgage Choice, we do what we can to simplify the process and make all the terminology easy to understand. Buying a home isn’t easy, but with our invaluable advice, we hope to remove as much of the stress and confusion as possible.