Whether this is your first time buying a home, or you’ve been here before – the property market can be a tricky environment to navigate even for the most experienced of us. Here are the top five things you need to know before heading into the game.
Excitement aside, this is the first step you need to take before you start looking. Home loan repayments and the costs of owning a home impact your budget more than rent payments do so consider your budget.
If you are taking out a home loan, while it might be tempting to borrow the maximum that you can borrow, check out how much the repayment is and whether this fits your budget. Consider what the maximum repayment is that you are willing to repay each month. Check out our repayments calculator to get an idea of repayments.
The big cost to factor in at this stage is your house deposit – which will be at least 10% of the value of the property, no matter how much you can borrow.
If you are ready to buy a home it’s important to know how much money the bank is willing to lend you so that you can move into your own home. Talk to one of our home loan specialists and apply for pre-approval to confirm your borrowing power before making an offer or bidding at auction.
Before you even sign the dotted line, make sure you look into these often-overlooked costs and weave them into your budget:
If you do enough legwork, you’re far less likely to settle (or overpay) for something you don’t really want. Here are some handy tips:
While you should be thinking about what’s important to you, you should also think about what could boost the property’s value if you decide to sell down the line too. Things like:
If you’ve already got a house then renovating your home could save you the hassle of looking for a new place and forking out for large costs, like stamp duty, legal fees and real estate agent commissions.
Of course, there are costs and inconveniences involved with renovating, such as finding another place to live while work’s going on or going over budget and timeframes. Plus, you might’ve already decided that buying is the way to go. And if this is the case, make sure you chat to one of our dedicated home loan specialists to understand the financials involved in both selling and purchasing.
This is likely to be the biggest financial decision of your life – so the last thing you want to do is make an impulse-based purchase just because you feel pressured.
And here are some tips to keep in mind when you’re ready to negotiate:
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