It may be quite an exciting experience to buy a home, but it can be tiring and stressful also. To ensure that the home you buy fits within your budget and your likes, make use of common sense while buying the property.
Following are tips to help you buy a home in Australia smoothly:
1) Be clear about your needs
Among the first tasks is to define the kind of neighbourhood where you would like to live and find house information there. One must spend some time researching the area. For instance, consider whether one likes to live near shopping malls and busy thoroughfares or in a calm and quiet or secluded area. Would one like to live close to local schools because of school-going children? In addition, one must be aware of what features meet the needs of the family such as a number of bathrooms and bedrooms, floor plan, area of space for a garden, size of the home, etc.
2) Define budget
A buyer must assess his finances to help determine how much he can afford to buy a home. He must ascertain how his income is used currently. He must list all existing debts and the dates of their pay-off. He needs to note how much he spends currently on utilities, rent, and other living expenses.
3) Ensure eligibility for a loan
The buyer must first determine whether he is eligible for a home loan. He must get in touch with several lenders to ensure that he is getting the best features and rates. Also, he must consider what kind of loan he can take, like variable loans/fixed-rate loans/investment loans/interest-only loans, etc.
4) Sort out debt
In case the debts of the buyer are high; it gets tougher to secure home loans. Instead, he must focus on paying away any big debts before applying for a home loan. He can also consider combining several debts into one.
5) Collect a good sum of the deposit
The bigger is his deposit, the more a buyer can borrow. Also, he can get loans at reduced rates of interest. A home loan can be taken out with 5% to 10% deposit, but the buyer needs to pay mortgage interest to the lender, if he has less than 20% deposit.
6) Crunch all the costs
The home buyer can incur many unpredictable expenses. He must keep a budget for stamp duty, registration fees, pest inspection reports, etc. Every territory and state in Australia charge a different tax for stamp duty and fees. Also, factor in council taxes charged by local authorities.
7) Research property market in the target area
From district to district and as per neighbourhood, selling prices can differ dramatically. If the buyer is focused on a specific district, he must conduct research on property values in the area. Both selling and listing prices must be checked, and he must find house information.
8) Seek the help of experts
There exist a range of professionals to assist the buyer among all steps to buy a property. Buyer agents will provide help in the total purchase process, while a mortgage broker can help navigate the loan market. Above all, use the services of conveyance to examine the contracts of sale and purchase thoroughly.
9) Figure out a strategy
In case one desires the ease of moving into a home that is already liveable and landscaped; one must consider purchasing an already complete property. Buying an already built-up home implies that you can live in an area with established footpaths, streets, shops, and transport services. But if you focus on total personalization, you may want to buy a new home which has been constructed from ground up as per your desires.
These are all some tips on how to buy a home in Australia.