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Buying Your First Home In 2022


While whispers of stabilising property prices are a light at the end of the tunnel for many, what should you know about buying your first home in the next year?

Apart from having somewhere to live, the quest for home ownership is also about having a long term investment strategy. However, doing so has arguably never been more difficult, particularly if you identify as a first home buyer. Rising house prices also mean larger deposits, which can be incredibly difficult when the cost of living is also on it’s way up. When combining this with tightening lending criteria, it’s easy to understand why the prospect of buying your first home feels out of reach for many Australians.

However, when there is a will, there is a way. Although property prices aren’t expected to drop until late next year or early 2023, industry experts have seen that growth is finally starting to stabilise. For those who have buying property firmly in their sights for 2022, the good news is that it’s not an impossible feat providing that you have access to the right information and have done the relevant preparation before you start making offers.

Five Tips For Buying Your First Home Next Year

Buying your first home in a hot market isn’t all doom and gloom. With interest rates sitting at record lows around the world, it’s worth considering that this won’t last forever and as such, it’s a good time to buy considering the lower borrowing costs. It’s also an opportunity for first home buyers to remove some of the emotion that usually comes with this rite of passage, and buying during this period can help them to make smarter financial decisions when it comes to approaching their first property as an investment instead of just a home.

While it’s understandable that many first home buyers have opted to wait until the property market simmers down from it’s current peak, the general rule of thumb to consider is that property is always going to increase in value. People who purchased a home ten years ago are in a much better financial position now, so it’s worth considering the concept of rentvesting as a viable option to enter the property market as well – but what are a few key things to consider when buying your first home in the next twelve months? 

Take Advantage Of Grants – As a first home buyer, be sure to double check if your circumstances and desired property qualify for any one of the various government issued grants such as the First Home Super Saver Scheme, the First Home Loan Deposit Scheme and the First Home Owner Grant. If you meet the criteria, it could save you thousands.

Create An In Depth Budget – It’s becoming more common for a first home buyer to miss out on a few homes, only to wind up buying the wrong house purely out of frustration and often for much more than they intended on spending. Avoid falling victim to FOMO – or “Fear Of Missing Out” – and shop for property in line with your budget.

Remove The Emotion – Many first home buyers make the mistake of approaching their first property purchase with rose coloured glasses, and get disheartened if they can’t find their ‘forever’ home. Instead, approach the task as an investment and be realistic on things like suburbs, the aesthetics of a property, and think pragmatically much like a property baron would. 

Be Competitive With Offers – When buyers are competing for a home, there is more than just price that will influence the end sale. Terms and conditions are key here, as real estate agents have seen owners accept offers of up to $50,000 less for an unconditional contract. Ensure that you have all of your paperwork ready to go, and be ready to make offers quickly.

Get A Pre-Approval Organised – When you’ve settled on a home loan that’s right for you, aim to get a pre-approval. While a pre-approval doesn’t lock you into the loan, the assessment from the lending provider usually lasts for up to three months with a potential to extend it for another three months, and shows sellers that you’re a serious buyer who has their financial affairs in order. 

If you’re now feeling excited instead of defeated at the prospect of buying your first home next year, the services of a reputable mortgage broker can help you to understand the ins and outs of the world of home loans and ensure that you’re matched to a product that’s best suited to your own individual set of circumstances – but where do you find one?

How To Streamline Your First Property Purchase 

The big attraction of buying your own home is just that – it’s yours, once you’ve paid back the banks of course. However, first home buyers don’t have it easy, which is why we’ve compiled our very own in depth First Home Buyers Guide. This resource is completely free to download, and could be a game changer when it comes to ensuring that you’re up to speed on how to streamline the process of getting into your first home. 

With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best, and another example of this is the free to use Savings Goal Calculator found on the Cherry Lending & Finance website.

If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.

Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.  Subject to lenders terms and conditions, fees and charges and eligibility apply.

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