How much of a deposit do I need?

There’s no one-size fits all answer, but the way we borrow has changed from 20-30 years ago, where the go-to answer was usually 20% of the total loan amount. It depends on the individual set of circumstances, but I urge home buyers to be open-minded. If it’s your first home, perhaps mum and dad can go guarantors, which means you may not need 20%. Ten per cent or even 5% of genuine savings might suffice to get you into the market. I’d say it’s always worth reaching out to an experienced lender to see what your options are.

What are some common mistakes that most home buyers make?

Getting too emotionally invested in a property. Buying a home is a hugely emotional purchase of course, but as a buyer, you need to be ready to walk away when you’ve reached your limit. Otherwise you can easily pay above what the property’s worth, overreach, or impact your capital growth potential.

What is the most important factor to consider when searching for a home?

The location. It’s an old cliché, but an accurate one. Location does 80% of the heavy lifting for capital growth, which means the value your home will increase over the coming years. A big home in the outer suburbs might cost the same as something smaller in an inner suburban area, but in most cases, it won’t have the same capital growth potential. Meaning, the two homes will be valued quite differently 10-20 years down the track. Consider your main reason for buying, and if capital growth is a factor then location can be key.

What else should home buyers think about when looking at houses?

The orientation of a property is important. Is it north or south-facing? North facing properties get more sun through the day, which can impact on your heating and cooling bills. Over 10-20 years this can be significant. Is it walking distance to public transport and other infrastructure? Is it on a tree-lined street? What are the local schools like? These are just a few important factors to consider.

How can using a buyer’s advocate help?

Knowledge is crucial when it comes to buying property, and having an experienced buyer's advocate on your side can help you stick to your budget and get your new home for the best possible price. Buyer’s advocates often have access to a large network of agents and properties, it’s our job to understand the market and to be well connected. Because we deal with agents daily, we can also help buyers understand key buying strategies, which can help give you the edge when buying a home.