First Home Buyer Tips

Reporter: Natalie Bonjolo

For first home buyers it must feel like the final quarter of a do or die footy match.

These young house hunters are under more pressure than ever before to take advantage of that $21,000 government grant.

If Gavin Hegney gets his way, come June 30, the government should axe the grant.

"History says a grant creates a false boom and that false boom brings false buyers forward into the market".

The top Perth property analyst believes the longer the grant goes the worse the crash will be.

"If you extend it and made it to the end of the year or until next year I think that will cause further pressure on the market which will have a larger void at the end rather than the void we're already going to experience".

That means these first homebuyers have exactly three months left to make one of the biggest decisions of their lives.

Buying a home can be more than a little daunting, so wouldn't it be nice if you could pick up the phone and call some of Perth's biggest builders and ask they're advice before you take the plunge? Well, that's exactly what we've done.

Nigel Satterley, head of W.A's largest residential land developer, Julian Walter, boss of JWH Group, builder of the Telethon home and Jared Stone, Sales Manager for the Homebuyer Centre gave us some advice…

Here it is in dot points from one to ten. Advice money can't buy...

1. Always consult with a family member or friend before making a final decision.

2. Ask for special deals. If you don't ask, you don't get.

3. Do your research. The astute buyer is well informed.

4. Get your mortgage pre-approved. That way you'll know how much you can spend before you start looking.

5. Keep your emotions in check. You can't buy a mansion on a beer budget.

6. Set up a loan to save you money by making more regular repayments.

7. According to Julian Walter one of the biggest mistakes you can make is to over extend.

8. Keep 10% up your sleeve.

9. Take meticulous notes. It's easy to get deals confused.

10. Once you've bought, don't look back.

The top websites to watch are www.realestate.com, www.reiwa.com, www.landgate.wa.gov.au, www.rpdata.com

Once you're armed with information here's Jared Stone's tips for the next step…

"Get pre-approval or understand what you're entitled to before you spend time looking at homes that way you have a budget to deal with. Your wish list and what you require here need to fit your budget and your circumstances. The difference between fortnightly and monthly payments is just a simple equation. There are more fortnights in the year than months so thus you end up paying a little bit more which will reduce your interest and pay your loan off quicker".