-Help- First Property PPOR

Hi Matt,

  As one who is not a Mortgage Broker, let me say that I have found it to be a very good move to involve one. 

  As Richard says, a bank will not tell you that your circumstances would be better suited by another bank's product.   A Mortgage Broker is able to take an overall look at YOUR situation and tailor a loan for YOUR benefit, as they have hundreds of possibilities at their fingertips.

  Richard is one who is spoken of highly within the forums, and there are several others right here who are also able to assist you (check their sigs as they reply).   Their replies give a very good idea of their expertise – as you read them, ask yourself if any bank lender would be able to provide similar in-depth answers.

  I say do yourself a favour, and check out what a MB can do for you.

Yeah, don't ask a barber "Do I need a haircut?"   An agents role is to sell you a property, and they are expert in closing deals.   Remain level-headed (perhaps even take someone else along with you who can give some cool and calm advice).  

Think of it like a Sale at a store – if you find an appliance that you like, appear interested yet mildly un-convinced, and can walk away even after they lower the price, and then go check out other appliance stores for better, you are ready to deal with an RE agent……   

Especially with your first buy, do be sure that you have your solicitor inspect the contract PRIOR to your signing it.   That is a very sensible way to give yourself time to relax and REALLY consider if this is the house you want.   

And have your finance in place (i.e. you have already seen your Broker) prior to buying.  Good luck,

Benny

Hi Matt

Initially, well done on saving such a significant deposit at your age.

I would defiantly recommend going via a broker. Both Richard and Jamie who have commented above would serve you well.

Have you thought about your long term strategy at all ?

Eg. Are you looking to simply buy one house and pay it off as quick as possible, thus living ‘mortgage free’ or are you looking to build a multiple property portfolio ?

My biggest advice to you, is answer the above question as early as possible, as it will define the choices you make going forward.

Matt

Hi Matt

You’ll do well mate

When you talk with a broker, make sure they understand your long term plans as this will have an impact on how they structure things.

Oh, and make sure you ask a heap of questions, and most importantly, you understand the structure they are recommending.

Knowledge is power…

Cheers

Matt

I would also recommend a broker, you can always walk away (and I have on a few occasions in the past) if they can't give you the best deal for your situation. I wish I had been able to find a decent broker back when I started buying property, but the internet and brokers weren't a big thing back then (not how they are now with property anyway).

Hi Matt

That sounds like a great plan…  it's also how i got started with property

Not sure if your still single, but renting a room to a mate will very quickly add to your savings.

When you do buy the property, just try to keep in mind that it is only a stepping stone for you, and ultimately it will become an investment and as such, buy something that will be a good rental – Eg. Close to train / transport, schools, shops etc

Cheers

Going direct can also be luck of the draw in terms of the quality of the banker you get.

I get nervous going to my local bank branch for anything because some of the staff are hopelessly incompetent (sounds harsh but it's the truth). I tried switching an offset account from one loan to another and it was an extremely painful process. 

Cheers

Jamie

+1 very well said in just two lines.

"You need advice on structuring the loan and there are a few tax strategies…." don't be afraid to spend a couple of dollars to get some good tax advice as Terry suggests.

FHOG no longer available for existing properties in Victoria. Rules changed as of 1st July 2013.

Cheers

Tom