Preparation for buying a property
Buying your first home is likely to be the biggest investment you will ever make. The process can be daunting, particularly for first time buyers. Here are our tips to provide you with the best preparation for buying a property.
Understand what you can and cannot afford
Before you begin your property search it’s important to work out exactly how much you can afford to spend on your new home. Many home buyers do this by calculating if they can afford to pay the monthly mortgage repayments. However with home ownership you also need to factor in the costs that you will incur during the purchase process ie legal fees, stamp duty as well as costs incurred ongoing as a property owner ie repairs, rates, insurance, body corporate etc. Thus before you step out to view properties – establish how much you can truly afford.
There is also no point getting excited over a townhouse when your budget only allows for a one bedroom apartment. Thus, establishing how much a financial institution will lend you is also as equally as important as is determining which loan is likely to suits your needs and lifestyle before you hit the market.
Do your research and understand the market
Having a sound understanding of the market as a whole, as well as your local area, can help you to make a more informed purchase decision and potentially eliminate buyer’s remorse down the track. These days there is a plethora of information available on the web to enable you to be more informed about current market conditions, suburb trends and the value of property in your local area all of which may impact your decision of where to buy and at what price. Here are a few resources we recommend;
Property Portals: Property portals like realestateVIEW.com.au are a valuable source of information. All of the leading Australian property portals not only provide current listings but also offer blogs / articles so you can learn more about current market trends. Portals also provide sold directories so you can view the latest sales results in your local area.
Data Sites: If you want to immerse yourself in the data; both recent sales and historical trends, then property data sites will be an invaluable resource. Sites like propertyDATA.com.au, Residex and others provide access to market trends, as well as historical sales results, median prices and a plethora of other information (some of which is free and other resources which incur small fees).
Agent websites: Agent websites can also be a great source of information, with many agents blogging about recent local market activity.
Understand the in’s and out’s of buying
You’re almost there. Once you’ve found “The One” you then need to go through the process of buying the property – which will differ depending on the method of sale. It is important to familiarise yourself with the various buying methods to understand your rights / obligations when purchasing via this method. Understanding this upfront may help you to avoid making a costly mistake down the track.
Need more help preparing for your first home purchase? View.com.au’s Ultimate First Home Owners Guide has everything you need to know about buying your first home – from finance to buying methods and more.