Top Tips For First Time Islamic Home Buyers

Post : April 8, 2022

Whether you are looking to purchase or build an Islamic home for the first time, there is often a sense of accomplishment or excitement that comes with it. If, on the one hand, you are choosing to build a home, you can always take advantage of the house and land packages which involve buying a block of land from a developer and selecting a builder to handle home build as a packaged deal.

However, there is a difference between purchasing an existing home and looking to build your own home in terms of financing; one will require a regular loan, whilst the other will require you to fund both the land and construction.

It is necessary to understand how big of a decision it is when leaping into homeownership. The process might seem overwhelming and complicated, especially if you are rushing in blind and unprepared. To help ease the process, here are some Islamic home-buying tips to help guide you and put you on the path towards homeownership.

Prepare Your Islamic Finance Australia

This is one of the essential tips to hold on to, especially when looking to become a new home builder or purchase a home for the first time. Your home will undoubtedly be an investment; however, an Islamic home loan can also serve as an investment.

In reality, they (lenders) are always on the lookout for low-risk customers for loans, which is where the need to portray a stable lifestyle comes in.

At the earliest stage of purchase you must understand the different types of options open to you; buy existing, buy new, house and land, or off-the-plan. Each type may have different requirements for you. We suggest that you consult a finance specialist so they are able to go through your personal circumstance and understand what is required in terms of; documentation, deposit, serviceability and any government incentives.

Nail Down Your Budget Early

While you are looking to purchase or build your dream home for the first time, it can especially come in handy to map out a realistic budget. In this instance, your budget will depend on numerous factors, including dependants, lifestyles

Also, while outlining budget plans, remember to include the invisible costs of homeownership which include; property taxes and maintenance expenses, and finally try as much as possible not to exceed the budget, as this trend has become common over the last few years. A proper budget is a key factor to seize halal loans.

Don't Purchase Solely Based On The Market

The housing market tends to fluctuate, and in some situations, there might be fewer buyers and more houses, which often results in a phenomenon known as the buyers' market. Timing the market involves predicting and understanding the perfect time to strike or, in this case, the best time to buy and waiting till that period.

While this could mean facing less competition and saving some money, it is essential to avoid timing the market. The one downside to waiting for a change in the market is the accumulated expenses on rents or risking the constant increase in home prices.

Have A "Must-Have" Home Feature List

While visiting or touring a display home might seem exciting, especially on your journey towards homeownership, it serves as the perfect time for you to start including things on your list of needs and wants. These could include the kind of luxury inclusions you are looking to have and paint colour.

However, you must ensure that this list is designed to suit your preference. Questions on the home's design, location, and possible renovations need to be answered. We want to point out that while you can change certain things within a home, like the bedrooms and kitchen, there are things you can't change, such as the lot size or location. You might want to have this at the back of your mind when drawing out your must-haves.

Hire A Real Estate Agent

A real estate agent undoubtedly specialises in finding a house that best suits your taste. Their experience allows them to determine if the neighbourhood is good, if a home is appropriately priced and how fast properties are selling.

They are also capable of preparing the required paperwork for you and negotiating a reasonable price on your behalf. While you can undoubtedly carry on these tasks by yourself, it will be beneficial and a more suitable option to employ the services of an agent, especially being a first-time homebuyer.

Avoid Skipping The Home Inspection

When looking to buy a home for the first time, no doubt, you are looking for a well-defined structure that will be able to stand the test of time. This is where a home inspection comes in, especially as it helps you discover underlying issues with the home's structure and roof, amongst other parts that could be very costly to repair.

In this case, while you would have taken the time to check every aspect of the home yourself, employing a professional on the one hand to examine the property would be beneficial. Though you'll need to pay for the services, the inspector will provide you with a detailed report on the property's structural condition and inform you of any expensive repairs that will need to be handled before buying the home.

Carefully Plan Your Offer

The state of the market will significantly influence the offer you plan on making. In other words, if there is less competition, then there will most likely be more leeway for negotiation. However, if it is a "seller's market" (A situation where there are not enough homes available on the market to meet buyers' demands), you may have to prepare for other offers.

When preparing an offer, it is pertinent to consider your agent's recommendations. In reality, there are many moving parts within real estate, and one factor that can make the difference between success or failure rests solely in an agent's guidance.

Creativity and flexibility can go a long way to getting your offer accepted. For example, you could consider writing a personal letter to the seller, dropping contingencies, or stretching your budget for a dream home.

Put Effort Into Negotiation

This is another instance where having an agent by your side will make that much-needed difference. Know how well to negotiate. If your initial offer is not accepted, you may need to negotiate with the seller.

Negotiation can also come in handy, especially when and if you notice some issues with the structure during a home inspection. It's possible to have these issues sorted out before purchasing the property by negotiating with the seller.

Wrapping Up

Being a first-time homebuyer or home builder can be overwhelming but finding the right builder means less stress and a bettter outcome. Afiyah provides guidance on home loans and budgeting you need to get the best deals on your first home without going against your beliefs as an Australian Muslim. With these tips, you can avoid being victims of common first-time homebuyer traps.

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