Guide to Buying your First Home

25 BUYING PROCESS of knowing there will be no unexpected costs for maintenance. When you buy an older home you really cannot predict what may be required for maintenance or just updating old appliances and fittings. When you have used your life savings and are now paying a mortgage – these unexpected costs can cause a great deal of stress. How about townhouses? Yes, townhouses on the fringe of the city can represent good value and offer a great opportunity for price growth. In areas that may appear to be very expensive there are quite often opportunities to buy a two storey townhouse at an affordable price. This is because they are built on smaller lots and therefore the prices are cheaper for the land. Most of these townhouses are well located on the projects and many have an aspect over a park or have public open space (park land) nearby. Ask the salesperson you are buying from if there is any Body Corporate Fees. Generally if there are Body Corporate fees when buying a townhouse on the fringe of Melbourne they will not be expensive and the funds will be used for such things as maintaining the parks and gardens that form part of the town house development and or rubbish removal. You may think buying a townhouse on the fringe of a capital city seems odd but remember, it won’t be too far into the future that these areas won’t be on the fringe and will be built up all around. If this is a property you can comfortably afford then it could suit you perfectly as your first home. Buying Land and New Home This is where the big advantages start for a first home buyer. When you buy land on a new land subdivision, the land generally has not been developed and this can create a massive benefit for a first home buyer. It takes between 12 and 18 months for the developer to construct the land (build roads, provide curb and guttering, gas, electricity, sewer and water connections). Then they will provide a title to enable you to make payment. When you do find a suitable block of land you will be required to enter into a contract to buy and pay either 5 or 10% of the value of the land for a deposit. This deposit will be held in the real estate agents, or the developer’s solicitors trust