Buying a house is possibly the biggest purchase of your life, so it’s important to get all the details right from start to finish. Here are some tips to help you prepare for what’s to come and to ease your mind during your home buying process!
Start Saving Early
The total costs of buying a property can be divided into upfront costs and ongoing costs. The former is the amount you need to pay after accepting your offer. In Australia, upfront costs generally include Lenders’ Mortgage Insurance (LMI) if you have a deposit that is less than 20% of the purchase price, legal and conveyancing fees, stamp duty, and pre-purchase inspections. Meanwhile, the latter is what you’ll spend on repaying the mortgage and maintaining the property, such as home repairs and furnishings.
Your final costs, however, will likely depend on whether you apply for government housing support. For example, the Home Buyer Concession Scheme grants stamp duty exemption to eligible first-home buyers, effectively reducing some of the upfront costs of buying property.
Research The Market
First, decide on the type of housing you’re aiming for. Each housing type has a different average property price, capital growth rate, and maintenance costs, so do your research thoroughly!
There are plenty of property research websites you can use to find potential properties for free. Some of the most popular ones include Real Estate, Property, and Soho. Determine the deciding factors like location, house type, and price, and then narrow down your options based on further research and personal preferences.
Explore Mortgage Options
This financial year, the government plans to announce several housing schemes and home loan programs to help first-home buyers enter the property market. With the right home loan, you can maintain a healthy cash flow and potentially save money in the future.
Since there are many types of loans to choose from, consider partnering with a finance broker to get sound financial advice. As a reputable finance mortgage broker in Perth, Southstead Finance has all the knowledge and expertise to make your application process easier. We can assess your financial position as a borrower, make sense of your finances and find the right solution to achieve your goals.
Stick to Your Budget
One of the most common mistakes first-home buyers make is bidding more than they can afford. Partnering with a finance broker can help avoid this issue as we can narrow down the loan products based on your credit score. By choosing a loan product within your debt repayment capabilities, you can avoid financial stress down the road.
Don’t be afraid to negotiate on price too! You can also ask the seller to cover any repair costs. While your bargaining power depends on the local property climate, you’ve got nothing to lose by trying.
Have the House Properly Inspected
Before putting in your offer, make sure your chosen house is worth its value. Have a building and pest inspector inspect the property thoroughly for potential problems. There are many horror cases where homeowners have had to spend a fortune to repair structural and pest problems after moving in. If you are looking at purchasing a strata property, also make sure to thoroughly review the strata report to ensure there are no surprises after settlement, such as special levies.
If the property doesn’t turn out to be the one, walk away and start over. It’s better to take your time picking the right property than to settle just because you’re emotionally attached to it.
Credit Representative 525543 is authorised under Australian Credit Licence 38928. Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.