Buying
Are you a first home buyer?
22-Nov-2016
It’s been said time and time again, but learning from other mistakes can save you not only time and money but so much unnecessary stress when it comes to buying a property.
How much do you need saved?
Some first home buyers make the mistake of thinking that if they’ve got a $70,000 deposit and a $700,000 home loan they will be able to afford a $770,000 property. There are many other costs involved, that people often forget to mention until it’s time to pay for them such as inspection reports, Lenders Mortgage Insurance (LMI), solicitors’ costs, and stamp duty are just a few of the additional costs in buying a home.
What’s your budget?
One of the most important pieces of advice is to know your budget and more importantly stick to it…even if it means missing out on your dream home. The best way to avoid overextending is to have a firm grasp on your current incomings and outgoings. If you know exactly where all your money goes each month, before you buy, you will be much better able to plan an affordable repayment strategy. When it comes time to make an offer, never go above your budgeted purchase price. You never know what might happen in the future that will put strain on your family’s finances.
Have you looked at all aspects of the property?
It can be hard not to let emotions get involved when inspecting a property. People immediately start thinking about how they’re going to remodel the bathroom or how they might arrange their furniture. The tendency to get too far ahead and caught up with the aesthetics of a property often distracts people from considering other essential points. Think beyond the home. What is the local council like and how do their services measure up? How has the suburb been trending in the past few years? How is the home positioned and what are the neighbours like? Are there many owner-occupiers around you? Is there adequate public transport? Are there infrastructure or building development plans near the property?
Have you got a building/pest inspection?
A building inspection is a worthwhile investment and has the ability to bring problems to light such as termite damage, water issues etc. We’ve all heard horror stories of buyers discovering structural faults, water or pest damage after spending their whole budget on purchasing the home. It’s so important to ensure a building and pest inspection is done prior to paying the 10% deposit.
SOURCE – Based on an article from Macquarie
How much do you need saved?
Some first home buyers make the mistake of thinking that if they’ve got a $70,000 deposit and a $700,000 home loan they will be able to afford a $770,000 property. There are many other costs involved, that people often forget to mention until it’s time to pay for them such as inspection reports, Lenders Mortgage Insurance (LMI), solicitors’ costs, and stamp duty are just a few of the additional costs in buying a home.
What’s your budget?
One of the most important pieces of advice is to know your budget and more importantly stick to it…even if it means missing out on your dream home. The best way to avoid overextending is to have a firm grasp on your current incomings and outgoings. If you know exactly where all your money goes each month, before you buy, you will be much better able to plan an affordable repayment strategy. When it comes time to make an offer, never go above your budgeted purchase price. You never know what might happen in the future that will put strain on your family’s finances.
Have you looked at all aspects of the property?
It can be hard not to let emotions get involved when inspecting a property. People immediately start thinking about how they’re going to remodel the bathroom or how they might arrange their furniture. The tendency to get too far ahead and caught up with the aesthetics of a property often distracts people from considering other essential points. Think beyond the home. What is the local council like and how do their services measure up? How has the suburb been trending in the past few years? How is the home positioned and what are the neighbours like? Are there many owner-occupiers around you? Is there adequate public transport? Are there infrastructure or building development plans near the property?
Have you got a building/pest inspection?
A building inspection is a worthwhile investment and has the ability to bring problems to light such as termite damage, water issues etc. We’ve all heard horror stories of buyers discovering structural faults, water or pest damage after spending their whole budget on purchasing the home. It’s so important to ensure a building and pest inspection is done prior to paying the 10% deposit.
SOURCE – Based on an article from Macquarie