Tips for First-Time Home Buyers in South Australia

For first-time home buyers, purchasing your first home can be an exciting but overwhelming experience. Here are some tips to help you navigate the process of buying a home in South Australia. A first home buyer (FHB) is a person or a couple (defacto or married) who is purchasing their first home in Australia. Be aware that Federal and State Government policies differ.

Navigating the home buying process in SA

Before purchasing it is important to ensure that your finances are in order, for a seamless purchasing experience. It will also help when you’re looking at the different property types that give you a clear understanding of your budget so that you can select a home in your price range. Once your budget is in order start researching the suburbs and type of property which would suit your lifestyle. Cedar Woods in SA offers two different property types, apartments, and townhouses.

Apartment

Apartments offer first-home buyers a great opportunity to enter the property market. Apartments are a more affordable option and a popular first investment among first home buyers. Apartment living offers no yard to worry about, and a body corporation maintains the communal areas. Apartments have a high level of convenience, security and are low in maintenance. Perfect for first home buyers in South Australia.

Townhouse

If you like the idea of lower maintenance but prefer more room, a small courtyard, private entrance, and neighbours then townhouse living is a great option. Many master planned communities provide a variety of floorplans and design options to choose from along with some colour scheme options and excellent range of optional upgrades.

Understanding the Terminology in the buying process and key considerations when buying your first home

It’s important to understand the terminology around some of the key requirements involved in buying a home. For some, it might seem like another language, we’ve made it easy for you by explaining what some of the terms mean.

Minimum deposit

Majority of loan providers require home buyers to have minimum of 20% deposit. However, first home buyers may only be required to put a deposit of 10% or less.

Mortgage insurance

Lender’s Mortgage Insurance (LMI) is frequently required when borrowing more than 80% of the property’s value. LMI is an insurance policy which protects lender from financial loss if you’re unable to meet your repayment obligations.

Strata Fee

Strata fees only apply when moving into an apartment. A strata fee is paid to a body corporation in charge of maintaining the exterior and common areas of an apartment complex. This includes things like building insurance, cleaning, gardening, and some maintenance.

Stamp Duty

Stamp duty in very simple terms is a tax you are required to pay to have a property transferred into your name. The amount paid varies between states and is dependent on the property’s value. This is an important factor to take in account when organising your finances as it can sneak up and you can become over-committed.  

Conveyancing and legal fees

These are fees you’ll pay to complete the legal paperwork required when buying a home. Conveyancers are legal professionals who help with the preparation of all required documents involved in selling and buying a property.

Home and Contents Insurance

You’ll need to organise home and contents insurance, from your preferred insurance company, prior to settlement day. Home and content insurance protects your home and its contents in the aftermath of theft, accidental damage, fire, floods, and storms.

Variable Rate Home Loan

Variable rate home loan leaves you at the mercy of fluctuating interest rates. Rates can go up or down at any time impacting your monthly repayments. However, a perk of this home loan is the ability to make additional loan repayments and set up offset accounts. Contact your finance provider to enquire about personalised advice that suits you.

Fixed Rate Home Loan

A fixed rate home loan means your loan repayments will stay the same for the duration of the specific term of your loan. You can fix your rate for a period of 1-10 years. Contact your financial provider to inquire about personalised advice that suits you.

The opportunity to buy your first home is such an exciting step. At Cedar Woods we understand buying your first home is a huge step and we want to help you along the way. Our first home buyer guides can assist you in navigation the home buying process. Download our First Home Buyer Guide or Financing Your First Home Guide.