The quickest way to buy your first house in the Adelaide Hills.
There are probably so many questions floating into your head:
Can I afford a house for sale in the Adelaide Hills?
Is it still a good idea to buy property?
Should I just keep renting?
Is it better to live in it or invest in it?
How much should I spend?
Where should I look?
Is the Adelaide Hills a growth region?
We know, because we’re homeowners ourselves. While there’s no replacement for real-time, hands-on real estate advice tailored to your situation, this resource can serve as an important part of your research.
How about we begin with the most important question to ask yourself.
Am I ready to buy a home?
Put aside the obvious factors for a moment, like finances. Yes, homeownership is more expensive than renting, especially because you’re responsible for the repairs, utilities, taxes, and other recurring costs. But here, what we’d like you to explore is if you’re emotionally ready to own an Adelaide Hills property.
Do you feel like you’re in a place in life where you’re self-sufficient? If something was to go wrong, do you have support to problem-solve it? Are you looking at moving interstate or overseas? These are all valid questions worthy of exploring, as property ownership shouldn’t hold you back. Rather, it’s an essential step in your journey to financial freedom.
Finances & saving for a house deposit
Have you paid off most or all of your personal debt, if you’ve accrued it? Credit cards, personal and car loans are the common culprits of debt. You don’t want to be in a position where you overstretch yourself or get denied for a loan for your dream Adelaide Hills property. Don’t put yourself through that emotional stress and instead, give yourself a debt paying to savings runway.
Speaking of savings, it’s a great idea to give yourself a buffer, so all your money doesn’t go into the deposit. Start this amazing journey on your best foot, by carving out a small-medium account that’s separate from your house. An emergency fund, if you will (which is usually three to six months of income).
As for tips for saving for a house deposit, Commonwealth Bank have a great resource. Analyse your current spending and set a budget. You can be as aggressive as you like, based on how quickly you want to reach your deposit goal. It gets easier the closer you get, as the savings compound and the momentum builds. Learn from finance legends like The Barefoot Investor, who help compartmentalise our money and make it work for you.
Pick one: A smaller deposit or lower ongoing costs?
Find out how much you can borrow, based on your income. This will guide many of your financial decisions along the way. But, there’s an essential question that’ll come up, that you might as well think about now.
Would I prefer to have a smaller deposit and get in my house earlier or save more and avoid paying Lender’s Mortgage Insurance?
Let’s say the house is worth $500,000. The typical deposit is 20%, so $100,000. If you’ve only saved $50,000, Lender’s Mortgage Insurance allows you to borrow the remaining $450,000 – a fee of approximately $7,900 which you’ll pay over the course of the loan. Use this calculator to work out LMI based on the price of property.
Know the government support that applies to you
This is one of the first home buyer tips you’ll love: Government support! While we wish there was a blanket ‘you get this’ for everyone, the entitlements change over the years. The best resource to get up to date information is the Government of South Australia.
Home loan tips & ‘shopping around’
Take your time with this step. Talk to banks, mortgage brokers, and explore the latest alternatives, such as the Joust platform (where real lenders bid in real time for your home loan).
There’s what feels like endless loan types and payment options. It’s easy to get tripped up by confusing acronyms and industry language, which is why we reiterate educating yourself as much as possible (and spreading your support network). Your real estate Adelaide Hills journey is multi-faceted.
Partner with awesome real estate agents
For information about houses for sale in the Adelaide Hills or to start your real estate journey, contact Nitschke Real Estate on 8391 5004. Got a question now? Fill in this contact form and we’ll get back to you soon.
Book a home inspection
When you get to the stage where you find your dream home, consider paying for a home inspection. It’s one of the tips for buying a house that can be easily overlooked, especially if you haven’t done this before. An inspection will provide a first home buyer advice about the integrity of the building. Often, there are problems hidden to the untrained eye such as mould, termites or roof problems. It’s also powerful information in that it might help you negotiate a lower price.
Which, of course, your real estate agent can will you the best chance of creating. So, are you excited? We sure are. Becoming a ‘homeowner’ is a rite of passage that should be enjoyed. Start the journey, confident and empowered.
