Guide to Buying your First Home

23 BUYING PROCESS Buying Process What type of property should I buy? This is a very simple answer, you need to buy new homes and ideally out on the fringe of a capital city where homes are affordable, and prices are still very affordable. Plus, you will maximise the benefits on offer from the government with the FHOG plus, stamp duty savings. Simply buy land and build. I do not recommend apartments, at present in many cities there appears to be an oversupply, and this could result in some price adjustments in the short term. You will also have body corporate fees to pay if you purchase into an apartment building. Expensive body corporate fees can be difficult to pay when you are committed to a new mortgage. I suppose I also like the aspect of owning that little plot of land, it feels great owning that tiny sliver of earth. It is also a known fact that it is the land that creates the real value in the transaction. An apartment or a house will in some form depreciate with age, the land will hopefully continue to improve in value. I have been involved in land sales for 38 years and I remember some of the first suburbs I worked, prices for 750 square metres lots were around $10,000. Today a similar lot would be worth more than $600,000. Plus, these areas are now considered to be very close to the city. How far out of the city will we be in another 37 years and what do you think the prices will be then? The other advantage of buying a brand-new home is they come with guarantees and warranties, which will provide you with the comfort