We have spoken in our recent blogs about renovating a home – this was for our current home owners. Today’s blog is for the people who aren’t already home owners and possibly those of you who already own and are looking to buy a new home to live in or property to invest in. Buying a new home is such an exciting time, especially if it is your first home – you probably can’t wait to live in a house you can call your own. Whether it is to start a family in or just to tick one of your life goals off the list, it will always be both a terrifying and happy time. One way that you can create as little stress and worry for yourself is to have a good understanding of what you want and the best way to get it. This sounds so familiar and kind of as if we are repeating ourselves from other blogs and topics – but in many things knowledge and research really is key! So what do you need to know before buying a property?
What do you want?
This is the first thing you should think about when purchasing. Naturally, it probably is anyway – so we aren’t worried about that! But you should definitely think (and maybe write down) in detail what it is that you want exactly. Some examples are:
- Backyard size
- Number of bedrooms and bathrooms
- Pool or no pool
- What does it need to be close too? Schools, shopping centre, gym, work, public transport etc.
- Number of garage spaces
- Kitchen type/size
You should then think about where you are looking to buy. Make sure you research the area, it might even pay to spend some time in the suburb you are thinking about moving to. Go to the local cafes, attend local events – just spend time doing the things you normally do but in the new area. Talking to local real estate agents will give you an insight into recent property trends and expected future trends for that area. You need to have an idea of how long you will be staying in the property and what you plan to do with it. Will you be living there long term? Renovating? Is it an investment property? These are all important things to know when going into it.
How much will this cost?
Now that you have decided what you want. You should look at houses with every single one of your boxes ticked. Realestate.com.au is a great resource for seeing what is out there. You can also visit real estate agents in the area’s you are interested in. Don’t have a price limit to start off with. This will give you a good idea of the most relevant property’s to your wants.
Can you afford it?
Now you have found houses that are exactly what you want in every way – you can work out if it realistic for you to buy one of them. If it is out of your budget, you may need to make some compromises. What is least important to you on your list? Take 1 or 2 things off and see what the prices of houses in your search are after you do this. You can also compromise with the location. If you are wanting to live in the city, maybe search for a property which is a suburb or two outside the city centre. The difference between a 10-15 minute drive could be the difference between whether you can afford your dream house or not. When you are considering the price, make sure not to forget the extra costs that come with entry. You may need to consider things such as stamp duty, legal fees, pest and building inspection, loan application fee, council and water rates and of course you will need to have a deposit saved. It is important to keep up to date with what is on the market, in case a great deal comes up. These are the type of properties that will not last long. Being first in best dressed will help you getting the property that is perfect for you. TIP: remember to consider what you are eligible for – first home owners grant etc.
Choosing a home loan
Every loan is different. Each loan will suit a different situation and budget. It is a good idea to have questions ready when you visit the bank. Make sure you completely understand every aspect of what is required of you and that you will receive and visit multiple different institutions to find what best suits you. If you are having trouble deciding, a financial planner or accountant will be able to look at your situation and help you figure out the best option for you. It is extremely important your loan suits your situation – you don’t want to end up with loan repayments you cannot afford to pay.
Be smart when inspecting
Smart sellers will naturally do their best to highlight the best parts of their property when you view them. They may put effort into making certain problems less noticeable. It is understandable that they do this, everyone wants to get the highest price they can when selling their beloved home. It is important that you are aware of it, however. Remember to look at the house in detail – not just how good it looks with their perfectly decorated walls and nice furniture. Check things such as whether there are adequate power points, holes or cracks, mould problems, check inside cupboards, oven, pantry for any damage. If you need to, take a list of things to check as you walk through. This way you won’t lose your sanity if you are excited about this amazing new home, because you will be grounded into checking for important problems. This is just a very basic outline of the things you need to look at when buying a new property. We are obviously not mortgage brokers, financial planners or accountants – so we recommend contacting these services if you need any detailed and intensive help with your purchasing process! Home ownership is something that we know is important to our customers – after all most of our customers are home owners themselves! We just wanted to highlight the importance of knowing what you need to do before purchasing, because we know ourselves that it is not a good feeling knowing that you have not been given the best deal possible.