The challenge of buying your first home can be daunting; unless you take a methodical approach you could either give up or buy something out of frustration. In this article we will show you how to climb the property ladder and reach the dream of owning your own dream home.

Tips for Climbing the Property Ladder

To make the process of buying for the purpose of climbing the property ladder easy, break the buying process into three phases. The Planning Phase, The Buying Phase and The Living Phase.

1. The Planning Phase

Here you need to consider the following:

• What type of property you would like to purchase?
  • Brand New or Established dwelling?
  • Apartment?
  • Unit?
  • Townhouse?
  • House and Land Package? or 
  • Off the Plan?
• What features you would like in the property?
  • Backyard?
  • Courtyard?
  • Open plan living?
  • Outdoor entertainment?
  • Pool?
  • Gym?
• Proximity to:
  • Work
  • Shops
  • Schools
  • Public Transport
• How much mortgage do you qualify for? 
• How to structure your mortgage?
  • Fixed interest?
  • Variable interest rate?
  • Combination of fixed and variable?
  • Interest only?
• Do you qualify for First Home Buyer's Grant?
• Do you qualify for stamp duty concession?

Knowing most of these information will make it easier to move on to The Buying Phase.

2. The Buying Phase

In this phase concentrate on location, location, location.

If buying property in established suburbs are out of reach, 

• Try up-coming suburbs with potential growth, or
• Try buying as close as you can afford to city centre, or
• Buy the worst house in the best street

When you have found your ideal property,

1. Use your head and not your heart
2. Negotiate hard
3. Buy subject to final finance approval (normally 14 days)
4. Buy subject to building and pest inspection (normally 7 days)

Remember, the real estate agent is getting paid by the seller and is working for the seller's best interest, and not your best interest.

3. The Living Phase

Now that you have bought your first home, in order to move up the property ladder:

• Treat your home as an investment
• Fix the issues that were found during building and pest inspections
• Make improvement to the interior, exterior and gardens
• If possible, rent one of the rooms in order to help with the mortgage
• Do not overcapitalise on improvements that will not increase the value of your investment
• Keep the property for three to five years in order to build enough capital gain to be able to afford your next property on the ladder

Repeat the process and in time you will move up the property ladder and own your own dream home.

Investors Buyer's Agents are experts in picking the right suburbs, and can help first time home buyers get on, and climb the property ladder by helping them choose the right property in the right suburb for the right price. We have discounted fees for the first time home buyers. Contact us for more information.