Looking to buy your first home Islamically?

Post : January 30, 2022

First time home buyers? Check out our handy guide to find the five fantastic tips that'll keep you in the safe zone. You need to be aware of a few things if you are buying a home for the first time because it's a tricky process. Or maybe you're not there just yet, but if you are contemplating purchasing a home, this guide might come in handy. 

Pre-Approval Is A Gamer Changer 

Home loan pre-approval means conditional approval received from a shariah-compliant lender. It will have the amount you want to borrow. The best part is it will be even before you find your preferred property. This is an excellent technique if you're going to narrow down the search while working on your confidence. Afiyah helps with the pre-approval of a shariah-compliant home loan.   

Pro tip: Understand how much deposit you have, work with Afiyah to learn how you can get a pre-approval completed so you are ready to make the leap to your new home that aligns with your values. 

A Conveyancer Works Like A Charm 

A conveyancer or solicitor will make your property ownership transferring procedure more straightforward. The conveyancer will do everything from reviewing the sale's contract to arranging pest and building inspections. It'll be great if you can find a legal representation at the earliest possible, and having someone on your side will make things smooth for you.

Market Trends Are Important

celebrating success with colleagues 2021 09 24 03 52 21 utc 300x200 - Looking to buy your first home Islamically?You might have got some understanding about your local property market if you have been researching for a while. If you haven't, we suggest doing your homework, and it saves a lot of time and money. 

Yes, one wrong move in the property market will cost you money, so be aware of what's happening in the market. You'll be able to make a better decision if you know the properties with better sales and the time duration for the sales. 

But what if you don't have time to do your research? You still have an option — Hire a buyer's agent! They have the skills to negotiate prices and have an excellent understanding of properties and market trends.

Having dealt with many first-home buyers, we understand it can be stressful. Contact us to discuss your next step in purchasing your first home in a shariah-compliant manner.

A Few Tips To Polish Up Your Negotiation Skills 

Negotiation is a nerve-racking job! But if you polish up your skills, maybe you'll be able to save some energy. 

  • Learn the market from scratch and know the approximate value of the property. 
  • Keep your offer documented (in writing).
  • Sort your loan pre-approval. 
  • Build a bond with the real estate agent. 
  • Be ready (mentally, too) to leave the deal if it isn't working. 

A 'sweetener' might shorten the settling period, so try offering one to your seller. However, you should never conclude without speaking with your mortgage broker and solicitor. Also, make sure that the property inspection has been done. 

How To Buy: Auction or Private Treaty? 

These are the two options to purchase a home. Both options are totally different from one another and have pros and cons of their own. 

Private Treaty: This is when the seller decides the property price. In this case, the buyer, which is you negotiate with the seller until the price becomes an agreeable rate by both parties. Usually, the negotiation takes place between the buyer and seller's agent. 

Auction: This involves the bidding system. Interested people will bid on the property, and the highest bidder will secure the property. If you see the properties you like on auction, it means you'll be able to find one for you as well on the auction. 

However, don't start bidding until you find the rope to the bidding system. Instead, attend some auctions and see how they work. 

Afiyah Financial Services help first home buyers with shariah-compliant home loans that allow Muslims to get into the market without compromising their values.  Get in touch with one of our specialists to discuss how we can help.

Latest Blogs

May 25, 2024

Superannuation and Retirement Planning in Australia

Superannuation is a pivotal element of retirement planning in Australia, designed to provide financial security for retirees. This compulsory scheme mandates that employers contribute a portion of their employees' earnings into superannuation accounts, fostering a culture of savings and investment that benefits individuals and the broader economy. Despite its strengths, the superannuation system faces several […]

May 24, 2024

Islamic and Behavioral Economics Guidance on Home Buying

Purchasing a home is one of the most significant decisions we make in our lives, involving not only financial considerations but also deep emotional and cognitive involvements. Drawing from the behavioural insights in Daniel Kahneman's Thinking, Fast and Slow, and deeply rooted Islamic teachings, this blog post offers a personalised exploration of how to navigate […]

1 2 3 67