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So you’ve decided it’s time. You’re going to buy your first home and it probably feels a little daunting, right? After all everyone has probably been telling you that buying a home is one of the largest purchases you will ever make and that it’s an investment in your future, so it’s pretty important you get it right.

Well, it doesn’t need to be so scary, especially if you have the right information at your fingertips. Which is why we have developed this guide to buying your first block of land and building your home. So, first things first…

Doing your sums To save your heart being broken from the outset, it’s probably best to do some basic sums first so that you know where you stand. There’s no point in finding a perfect block of land and then discovering that you can’t afford to buy it.

Our budget planner is a useful tool (check it out under our Finance section). Basically, how much you can borrow towards your new home will depend on lots of things, such as how much you earn, the income of the people that you may be buying the property with and how much you spend each month on other commitments such as car loans, personal loans, credit cards and living expenses etc. The first step in getting a mortgage is to do a budget, so you get a clear picture of where you stand financially. This will give you a feel for how much you can afford in mortgage repayments. Note that many land developers, including LWP, now require you to get a pre-approval letter from your chosen financial institution, so doing your budget early is a great move.

Buying solo or with someone An increasing trend is for people to buy joint property by pooling their resources with friends, family or compatible acquaintances. The main benefit of buying a property jointly is it can help you afford to enter the property market. If you are looking to purchase your property with another person, make sure you consider the following:

Will you register your property as Joint Tenants or Tenants in common?

It is important to understand that these options have different legal ramifications for each borrower against the loan.

Top Tips for buying land

Understand your financial limits Talk with your bank or finance broker and secure a pre-approval letter from a finance institution.

Understand your property criteria and do your research It will help if you have a clear view on criteria such as preferred location, (e.g. close to family, employment, public transport), lot size, etc. With your financial capacity understood and property criteria established you are equipped to undertake very meaningful research.

Choose quality More than ever real estate is a long-term investment with short-term windfalls unlikely. Choose a lot that meets your criteria and has sound long-term investment potential. History shows that master planned communities with a comprehensive program for facilities and services outperform the ad-hoc subdivisions. Perth is fortunate to have the best selection of master planning communities in Australia.

This guide has been put together by LWP Property Group to give general advice about the process of buying land and building a house on it. All advice is only general in nature and it is advised to always seek additional professional advice.

The Big Purchase: An introductory checklist

Can you still get the First Home Owner Grant if buying a joint property?

When buying a property with someone else, you will still be able to get the First Home Owner Grant if all co-buyers on the mortgage are eligible to receive the first homebuyers grant.

Where to look and what to look for? Once you have decided who you are buying with and how much you can afford to spend, the next basic step is getting an idea of where you might like to purchase and doing your research.

It is useful to sit down and write a list of “must-haves” and “would likes”. Think in terms of facilities, access to public transport, proximity to family and friends, lot size, and so on. In our section on “The Big Decision” we have included a couple of useful checklists to help you compare different land estates.

When you’ve made a list of the areas where you think you’d like to live, allocate time to go and visit them. See what’s out there on the ground, have a drive around established parts of developments to get an idea of what the new areas will look like once established. Call into the land sales office and get any extra information that you may need and the latest availability and price lists.

While you’re out visiting, call into display homes – many estates have them and they’ll show the latest trends in house design. The Builders’ Sales Consultants will be able to help you weigh up what houses in their range will fit your favorite homesites.

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