10 tips for buying your first home

Property prices may go up, but there are ways to get onto the property ladder.

We love property in Australia―it’s part of the Australian dream1. About 70% of us live in our own homes. But owning property can seem an impossible dream for first homebuyers with research revealing they hold less than 12% of all home loans2.

Don’t lose heart. Our tips for home ownership may help.

  1. Build your plan - The earlier you start planning, researching and saving, the better off you’ll be.
  2. Work out what’s most important for you in a property - Shortlist suburbs and properties that meet your needs.
  3. Can you take advantage of potentially undervalued suburbs? You may be better off with a more affordable house in a different location that may prove a good investment over time.
  4. Work out costs - Make sure you understand the upfront costs of buying property—for example, stamp duty and lenders mortgage insurance (if it applies). Consider the ongoing costs like loan-interest charges and any relevant strata fees. Our cost of home loan calculator can provide information about other costs.
  5. Gather your deposit - When it comes to saving, work out your income and how much you can save while meeting day-to-day needs—use our budget planner. Then how long it will take you to save your deposit—consider AMP’s savings accounts for competitive interest and ready access to your money.
  6. Work out how much you’re likely to borrow and how you’ll repay the home loan - Use our loan repayments calculator.
  7. Some states may still provide first home buyer grants - Contact your state revenue office.
  8. Choose your lender - Visit several lenders and when you’ve found the right one, arrange financial pre-approval. With a pre-approved home loan from AMP you can benefit from competitive interest rates and terms, and be ready to bid or buy when you find the right property.
  9. Find out more at Q&AMP where we cover all things property.
  10. Consider seeking financial advice so you can make the most of your money.

1 Housing tenure data in the Census 2011.

2 Australian Bureau of Statistics, August 2014, http://www.realestate.com.au/blog/first-home-buyers/.

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© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.