You are tired of renting and have started thinking about owning your first home. Before you start, several factors should be considered when purchasing a home:

How long do you plan to live in the home?

If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.

The length of time that it will take to cover those costs depends on various economic factors in the area of the home, you should plan to stay in your home at least 3-4 years to cover buying and selling costs.

How long will the home meet your needs?

What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could alterations be done to create extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.

Your financial situation, your credit and home affordability?

Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, banks are more sceptical if your credit history is not good. To determine what level of bond you can afford, use our affordability calculator. Then contact one of our experienced property finance consultants, or complete our contact form and an experienced consultant will contact you at a convenient time to discuss various options with you.

The general rule of thumb is that your monthly instalment should not exceed 30% of your gross monthly income. This calculation is referred to as the Affordability factor. Affordability factor (AF) = {monthly loan instalment divided by gross monthly income} x 100

Where will the money for the deposit and bond and transfer costs come from?

Typically homebuyers will need some money for a deposit and bond and transfer costs. However, with today's broad range of loan options, having a lot of money saved for a deposit is not always necessary - if you can prove that you are a good financial risk to a lender. If your credit isn't perfect but you have managed to save 10-20% for a deposit, you must still appear to be a good financial risk to a lender.

The ongoing costs of home ownership