Once you’re ready to enter the property market and buy a house it can be exciting, nervous and exhausting – all at the same time. Here are some tips that can help you get on your way to being a proud home owner.

1. Set some boundaries

Knowing exactly what you want will help you narrow down your search and could save you a lot of time and stress. Make a list of:

• your preferred areas

• essential and non-essential requirements close by (ie, schools, public transport, shopping centres and hospitals)

• essential and non-essential property features (bedrooms, parking).

2. Organise your budget

Carefully assess your financial situation and desired standard of living when deciding how much you can afford to borrow and repay. Take into account:

• your employment circumstances

• financial commitments (ie what are you already paying off?)

• any future plans (eg, starting a family, school fees)

• other possible changes (eg, interest rate rises).

Life is full of unexpected surprises – not all of them happy ones – make sure you build in some contingency plans, in case things don’t quite turn out as planned.

3. Factor in purchase costs

There’s more to the price of buying a house than what you see printed in the real estate guide. Consider all the costs of buying a property, including:

• legal fees

• loan establishment fees

• government charges such as duty, GST and the fire services property levy

• building and pest inspection fees

• moving costs.

Also consider ongoing costs of property ownership, including:

• insurance (building and contents)

• property rates (council and water) and land tax

• maintenance and repairs.

However, there are some concessions you may be eligible for including the first home owner grant or the principal place of residence duty discount, so be sure to investigate.

4. Get informed about the property market

Research the market value of property in your preferred areas by:

• attending auctions

• speaking with agents

• doing research online

• reading newspapers for auction results.

5. Do your homework on loans

When getting a home loan (or mortgage):

• work out the amount you need and feel comfortable borrowing

• use loan calculators to see how the amount borrowed, the loan period and the frequency of repayments affect the time you will need to pay off the debt

• ask your lender questions about fees and charges

• carefully review the loan contract terms and conditions

• be wary of financial advice or referrals from mortgage brokers.

6. Inspect the property carefully

Inspecting a property will tell you about its features and condition and give you a sense of the local area. You should make several visits to a property before deciding to buy it. The first visit will give you an initial impression and determine if the property meets your basic requirements. Further visits will give you an opportunity to check whether repairs are needed and for signs of any structural problems.

Before signing a contract of sale, consider engaging a qualified building inspector, surveyor or architect to provide a professional building inspection report. The fee for a professional inspection service is small compared with the cost of buying a property that needs extensive unforeseen repairs. A qualified inspector will know what to look for eg, major structural defects or termite damage and will see through any cosmetic improvements that cover up faults.

7. Speak to the local council

If the property has been renovated or extended, check with the local council to find out whether the relevant planning or building permits were obtained. Any illegal alterations may become your responsibility once you sign the contract of sale.

You should also check whether the property is in a bushfire-prone area. In Victoria for example, the seller must declare this in the disclosure statement.

If you intend to renovate or develop the property (eg, subdivide, demolish and rebuild) you should check the planning scheme and ascertain permit conditions.

8. Before you sign – get legal advice

Make sure you carefully read and understand all terms, conditions and fine print of any document involved with the sale.

You should always seek independent legal advice before signing any contract. The legal fees you will be charged for a professional review is minuscule compared with the cost of buying a property or entering into a bad contract. Also, if you require any special conditions to be inserted in the contract, you can instruct your lawyer to assist you with this process before the contract is signed.