Even the most seasoned among us may find it challenging to navigate the real estate market, whether it's your first time purchasing a home or not. In this article, we have listed down some crucial things to know before getting started on your search for the perfect home.
Know How Much You Can Afford
This is the first thing you should do before going on the hunt. Owning a home significantly influences your finances more than renting, so plan accordingly.
As tempting as taking the most extensive home loan possible, you should check to see if your budget can handle the repayments. Consider how much you can afford to pay back each month. Use our repayments calculator to see how much you'll have to pay back.
Regardless of how much money you can borrow and from which mortgage broker, you'll need to come up with a deposit of at least 10% of the home's worth, no matter how much you can afford.
You need to know how much money the bank is prepared to offer you if you want to purchase a house and settle down. Before making an offer or bidding at an auction, speak with one of our home financing consultants and apply for pre-approval.
Do Some Research
You'll be significantly less inclined to settle for something you don't want if you do enough research. Consider these helpful hints:
- Consider where you'd like to settle down.
- Visit real estate websites to look up recent selling prices and neighborhood information.
- Talk to local real estate brokers to understand the current market conditions.
- Take a look at what's being sold in the nearby suburbs.
- View our property profile reports' recent sales and rental history for comparable properties.
It would help if you also considered essential aspects that can boost its value, such as school zoning, transportation options, nearby amenities, and the quality of the neighborhood.
Look into the Overlooked Costs
Look at these often-overlooked fees and incorporate them into your budget before signing the contract:
- Stamp duty
- Council fees
- Lenders mortgage insurance
- Added protection
- Conveyancing fees
- Loan fees
Consider Renovating Instead
If you currently own a property, remodeling it might spare you the trouble of shopping for a new place and the expense of paying stamp duty, legal fees, and real estate agent charges.
Of course, remodeling has expenses and drawbacks, such as finding a different place to live while the work is being done or running over budget and schedule. You may already have concluded that purchasing is the best course of action. And if that's the case, be sure to speak with one of our knowledgeable home loan consultants to learn about the costs of selling and buying.
Don't Make an Impulse-Based Purchase
The last thing you want to do is buy something on a whim just because you're under pressure.
Always have the following in mind:
You can always leave and decline. The fact is that there will be other homes available.
Watch your emotions. Real estate brokers act in the seller's best interests and will seize upon any sentimental ties you may have to the property to close a deal.
Even after signing a purchase agreement, you still have three full business days to reconsider your decision and cancel the transaction if necessary.
Conclusion
A home is a huge investment and buying one is a complex process. If you are planning to buy your first home, this article is an excellent place to start.
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