First Home Buyer Q & A

I'm not an expert on the subject, but i'll share some experiences. I've bought my third property just recently and i am still learning everyday about property. It is a complex thing. There are so many things to consider. For example, do you plan on investing in property in the future? Well if you do remember this, some peolple especially younger people buy a house that is not necesarily within their budget, they normally have a car loan, personal debt and credit cards. But when they buy a house some start thinking about how impressed their friends will be when they see the house and when they come for parties it will be fantastic!! That is all good but you don't want to be so far in debt that you can't breathe, speak with a financial planner or the like and really know your budget and expenses cos we tend to want all the nice things from the start, I went that way and it was great until i wanted to invest in another house, i thought with the equity in my house it would be ok. I was wrong, i had too much personal debt, three cars a credit card mobile phone bills and the list goes on. So i had to re evaluate my whole financial situation, I basically went the wrong way i wanted all the nice things first but i doesn't work that way. I got my second property and third and I plan on keep going. I think it is important when buying a house, is look down the track, 2 years 5 years and think how might my situation change. Buying your first house is a really exciting time, but speak with people, real estate agents, financial planners even people around you at work and ask questions all the time, i've found that asking questions vital, it's better to ask questions and look like a dummy rather than pretend you know things and not really understand it, like when you signn contracts, these are bound by law as you know so read through contracts they might be boring but understand exactly what agreements you are entering into, your solictor will go through contracts with you but have a read through yourself i find that they are not always boring cos everytime i read through a contract i always learn something. And even little things could save you money. Understand the clauses in the contract and what they mean, the main two will be finance and building and pest inspections. The finance is self explanatory, but DO get the building and pest inspections done they will be an upfront cost but as the first reply said there are little things called termites and i just recently found out information about termites, bottom line is that they are very distructive, so you definatley don't want to buy a house that have termites. I hope that i haven't tried to preach to you, but it is a big investment so you must do your homework and above all ASK QUESTIONS.

agree totally with the above post. similar happened to us. we recieved the loan contract, (addressed to 10doors up from us might i add) missing the copy that we were supppose to sign and send back in
they still havnt managed to get our postal address right
"which bank" was that, or need i ask

I think the posts above highlight why alternate lenders are gaining so much traction in the Australian market, and continue to go from strength to strength.

Frankly, anyone who just wanders up to their bank (who've they've been with for x years) and takes out whatever loan they offer, needs their head read.

There are so many great deals out there, with companies that will overservice rather than underervice - I know what I would rather!

My tip is to everyone (and although I've only bought one house) is shop around - and, if for some reason you 'want' to give you bank last chance, then front up and put it to them straight: I have been offered deal y with company z, and if you can no at least match what they're offering, I will take all my business away. You will be surprised what they can actually do. Even with existing loans!

No consumer should feel any loyalty to any banking institution - their job is to make money off you! Working in insurance I see this everyday, and I know if I don't keep service levels up, clients will go elsewhere without a thought - unless you have displayed service 'above and beyond'.

Sorry, just my 2c.

1. Had a termite check..... came back clear... there were termites!
2. No taps in the house, the sellers 'in-laws' stole them all!!
3. Power was not on when we bought (vacant for a while) But sellers 'in-laws' stole the air/con remote. (They tried, but failed, to rip out the air-con)!!!

Plus side, we did get the house cheap