Buying Your First Home: Is The Time Right?

If you are currently renting but considering shopping around for your first home, the time is right. The past year in real estate has led to many homes lingering on the market and a drop in home prices. To top it all off, interest rates on mortgages appear to be headed downwards. Just last week we saw a number of the major banks dropping their mortgage interest rates. With many more affordable homes to choose from, it's not only a buyer's market, but a first time homebuyer's dream market too.

When thinking of purchasing a first home, there are many things to take into consideration. To keep your costs down, you may consider looking at fixer- uppers. Are you reasonably handy? Can you make some attractive but low cost improvements on a home that needs a little work? Maybe it's as simple as some fresh paint and carpet. Maybe it's a new sink top to spruce up that tired looking kitchen. Kitchen improvements don't have to cost thousands and much can be done on a shoestring. There are some great low cost Formica benchtops at home centres. These will give your kitchen a whole new look on a small budget. And, old cabinets can come to life with a fresh coat of paint and new handles.

Another option for first time homebuyers to consider is looking at units and townhouses. This is an excellent way to enter the market. For about the same cost as rent each month, you will have pride of ownership while building equity at the same time. After a year or two, you may feel you need more space or perhaps need another bedroom. By this time your unit or townhouse will most likely have appreciated in value, and you will have built up some equity, making it easier to trade up to a larger home. This is a smart transition and a way to step up slowly rather than committing a huge portion of your income to mortgage payments by buying an expensive house first up.

The changing market this past year, where supply has outstripped demand, has provided plenty of great homes to choose from. With interest rates now starting to fall this could be the ideal time for first home buyers to get a foot on the property ladder. I believe that first time buyers are looking at some excellent opportunities in the real estate market.

We hope you enjoyed this article.

If you are a first home buyer, make sure you check out our book "What's Your Property Worth". Downloadable from our site, this book will show you, step by step, how to choose and pay the right price for any property.