Finding your new home
The goal of home ownership in Australia remains an important aspect of our culture which offers people a sense of accomplishment, a deep personal satisfaction and a feeling of connection to their community. While the journey towards home ownership is exciting and filled with joy, many people still find purchasing property to be a overwhelming experience. Your buying journey however doesn’t have to be like this. If you are equipped with relevant industry knowledge and understand the process you will find your journey is much smoother and more enjoyable.
WHERE TO START?
Understand your financial position:
Obviously having the financial capacity to secure a home loan is an essential starting point when seeking to purchase property. We find that many buyers simply don’t understand their borrowing capacity and have not received a pre-approved loan, making it hard to confidently put an offer on a property. We recommend you speak with your financial institution before you even have a deposit to find out exactly what you need to do to become eligible and how much deposit would be required. Once you have a deposit figure in mind you can adjust your own budget accordingly and work towards saving the deposit. You can then approach the bank once you have your deposit saved and they can provide a pre-approval which will ultimately give you a budget to maintain when you are out house hunting.
Understand the local property market:
Before you start house hunting you should do your research to establish an understanding of the house prices in your area. This will assist in determining the best value for your money and the best location dependant on your individual circumstances. You can research property prices using websites such as www.realestate.com.au or your local property magazine or even in agency window displays and through attend open homes predominantly held on weekends. You should review recently sold properties to see what prices have been achieved within the area you are interested. Many buyers immediately overlook properties without prices listed or that are for auction but this is certainly only going to limit your options when purchasing. Buyers should always review every property available that suits their requirements, the auction process works just as well for buyers as it does for sellers. Obviously you need to also consider economic factors such as interest rates, supply and demand and other market trends.
The actual cost of purchasing:
Many buyers don’t fully understand all the costs associated with purchasing property which can be problematic and is often where buyers find the process stressful as they learn of costs throughout the sale. It is important to understand the costs of purchasing include transfer duty if applicable in your circumstance, conveyancing costs, property inspection costs, independent valuation costs and any other relevant legal fees. Once you have purchased you then have the mortgage repayments, insurances, utility connections and ongoing fees, council rates, body corporate fees and general maintenance costs. It is important that you understand the costs involved and have budgeted accordingly to avoid any unwelcome surprises.
The professional services:
When purchasing you will need to appoint the following professionals to assist in the transaction;
- Financial Provider – you will need to work with a financial institution to secure a mortgage and ensure that the finance is approved for you to make your financial obligations associated with the contract to purchase.
- Solicitor – they will act on your behalf throughout the sale and will ensure that the legal aspects of the purchase are managed effectively and will work with your financial provider to ensure the mortgage contract is processed accordingly.
- Property Valuer – quite often your financial provider will organise the valuation to ensure that the loan amount is secured by the value of the home, you may also wish to enlist the services of a property valuer if you are uncertain about your investment and need more information to make a confident purchase decision
- Building inspector – you will need to hire a building inspector to work on your behalf to inspect the property and ensure that there are no major concerns that will impact on the purchase price of the property or the safety of the home.
When purchasing a property, the best process is to do your research first so you are able to confidently make decisions regarding your purchase and minimise any associated risks. You should have a clear understanding of your financial position and obligations, the sales process, the people you will need to work with and the ongoing costs associated with home ownership. There are plenty of professionals that can provide advice and support throughout the process and it is important to ask questions along the way to ensure you are fully informed and this will reduce stress and uncertainty throughout the buying process.
If you are considering buying – you know who to call NEXT.