Avoid these 7 property hunting mistakes as a first home buyer

As a current or former Australian Defence Force member, you're in a unique position when buying your first home. You have access to exclusive benefits, packages, and first time home buyer schemes that civilian buyers don't. However, property hunting still requires strategy and preparation to make the most of these advantages.

Let's explore the essential property hunting techniques that will help you secure your first investment property or family home while making the most of your Defence background.

Understanding Your Financial Position Before You Start

Before you start scrolling through property listings, you need a clear picture of your financial situation. This means understanding your borrowing capacity and what loan amount you can realistically manage.

Your Defence Force income provides stability that lenders appreciate, but you'll still need to gather your bank statements and assess your spending patterns. Consider these key factors:

• Your current salary and any allowances
• Existing debts and monthly commitments
• Available deposit amount
• Your preferred loan to value ratio (LVR)

Getting pre-approved for your first Home Loan gives you a significant advantage when property hunting. You'll know exactly what you can afford, and sellers will take your offers more seriously.

Leveraging Defence-Specific Benefits and Schemes

As a Defence Force member, you have access to several programs that can make buying your first home more affordable. The Home Guarantee Scheme allows eligible first-time buyers to purchase with as little as a 5% deposit while avoiding lenders mortgage insurance (LMI).

Additionally, you may be eligible for:

• First home owner grants (FHOG) varying by state
• Stamp duty concessions or exemptions
• Interest rate discounts through certain lenders
• Specialised first time home buyer programs

These benefits can save you thousands of dollars, but the application process requires careful attention to eligibility criteria and timing.

Choosing the Right Loan Structure

When applying for a home loan, you'll encounter various interest rate options. Variable interest rates offer flexibility and potential savings when rates drop, while fixed interest rates provide payment certainty for a set period.

Many Defence Force members benefit from loan packages that include:

• Offset accounts to reduce interest payments
• Fee waivers or reductions
• Access to Home Loan options from banks and lenders across Australia

If you're considering your first investment property alongside your home purchase, investment loan options may also be relevant to your long-term strategy.

Property Research and Market Analysis

Effective property hunting goes beyond browsing online listings. Research the local property market thoroughly, including:

1. Recent sale prices for comparable properties
2. Average time properties spend on the market
3. Future development plans for the area
4. Transport links and amenities
5. Rental yields if considering investment potential

Defence Force postings can affect your property strategy, so consider locations that offer flexibility for your career progression.

Inspection and Evaluation Techniques

When inspecting properties, approach each viewing systematically. Create a checklist covering:

• Structural condition and any visible defects
• Natural light and ventilation
• Storage and living space efficiency
• Outdoor areas and privacy
• Parking and street appeal

Don't rush this process. Take photos and notes during inspections to help you compare properties later.

Making Strategic Offers

Your pre-approval and Defence Force employment stability can strengthen your position when making offers. However, successful negotiation requires research and timing.

Consider these factors when determining your offer:

• Comparable recent sales
• How long the property has been listed
• Market conditions in the specific area
• Any property defects or required improvements

Remember that buying a home involves more than the purchase price. Factor in legal fees, building and pest inspections, and moving costs.

Working with the Right Professionals

The streamlined application process available through specialist Defence Force brokers can save you time and potentially secure better terms. These professionals understand military life and can access to banks and lenders nationwide while managing the complexities of your unique employment situation.

Building relationships with buyers' agents, conveyancers, and building inspectors who understand Defence Force requirements can also prove valuable throughout your property hunting journey.

Buying your first home as a Defence Force member doesn't have to be overwhelming. With proper preparation, understanding of your available benefits, and strategic property hunting techniques, you can secure a property that serves your needs both now and in the future.

Call one of our team or book an appointment at a time that works for you to discuss how we can help you access the most suitable home loan options for your situation.