So, you’ve made the decision to go from tenant to homeowner! While it’s an exciting leap, there are a few steps in between to get it right along the way. Here’s a practical guide to going from renting to buying, minus the overwhelm.

Check You're Financially & Logistically Ready

Before finding a home to fall in love with, it’s time to get your ducks in a row. It’s worth chatting to a mortgage broker about where you stand financially and what you can afford. They’ll help you calculate your borrowing power and compare loans. You’ll also have to decide what deposit you’re comfortable putting towards your purchase.

Budget Beyond The Loan

Owning a property means extra expenses renters don’t deal with like council rates, insurance, strata fees and ongoing maintenance. Ensure you have a “just-in-case” buffer for ongoing property maintenance costs. You’ll thank yourself when the hot-water system dies! You’ll also need to factor in extra expenses that come with purchasing a home like stamp duty, building/pest inspections, mortgage-related charges and settlement agent fees to name a few.

Start To Research The Market

Get familiar with the suburbs you’re interested in. Realestate.com.au is about to become your best friend! Track sale prices, monitor how long properties stay on the market and get a feel for future growth prospects so you can buy with clarity and confidence.

Get Your Loan Pre-Approved

Now that you know where you stand financially, you can work with your mortgage broker or bank to get your loan pre-approved. This will ensure that when you start going to home opens and find a property you love, you’re able to act fast.

Prioritise Your Property Checklist

Separate your must-haves (location, beds/baths, parking, school zone) from your nice-to-haves (pool*,* scullery, extra-high ceilings) and go into home opens with your head, not just your heart.

Make An Offer

You’ve found a home you love, now it’s time to put your best foot forward. When it comes to making an offer, you want to come in strong and smart. The selling agent should be able to give some guidance around pricing as well as what the sellers want when it comes to conditions like settlement period, so that you can make sure your offer stands out. In the current market, don’t be discouraged if you miss out on a couple of homes. It’s important to not lose hope and know that the right property for you will come along!

Exit Your Rental Smartly

Once your offer has been accepted, revisit your lease to understand whether you’re on a fixed or periodic agreement and how much notice you’re required to give. Try to align your settlement date in the offer stage with your notice period to avoid paying rent and a mortgage at the same time, and leave yourself enough breathing room to organise final inspections, bond cleaning, redirect your mail and transfer utilities.

Celebrate!

Now that you’ve officially bought a home, it’s time to celebrate! Come moving day, be sure to line up your removalists, organise utilities to be connected (power, water, internet), forward your mail and other life admin. From there, it’s all about unpacking, settling in and enjoying the feeling of having a place that’s truly your own.