Top tips when buying your new home
1. Do your homework
It’s a good idea to know how much you can borrow before the search begins. Be mindful of the hidden expenses that come with purchasing property like stamp duty, council rates, pest and building inspections and settlement agent fees. There are a number of free calculators that will help determine the final purchase price including the above costs before you settle on a final amount.
2. Research your area
Deciding on an area is the next step. It’s a good idea to attend home opens in the area to get an idea of the market price of similar types of properties. This will help inform you on what prices are being asked for and what you get for your money.
3. Accounting for costs after the purchase
A mortgage is a big commitment and may require some changes to your regular budget. Stretching your budget to the limit may leave you exposed should an unforeseen maintenance bill come in or some other planned expense. Even little thing like stocking up the fridge and freezer can take extra dollars. Other expenses such as rates and water taxes should also be budgeted for. Should interest rates drop it is a good idea to keep repayments at the higher interest rate allowing you to pay off your mortgage sooner.
4. Consider your loan options and needs
With many options on the market, consider what it is you want from your loan. Do you need flexibility, a redraw option, an offset account or are you happy to fix your loan for a period of time. In our next edition we will explore loan options in more detail.
5. Be careful who you listen to
There are many expert opinions you can draw on for more information. Family and friends will gladly offer advice; however be sure that this is backed with evidence before making a decision. When in doubt call the experts, in most cases their advice is free and could save you thousands in the future.
Until next time, happy house hunting.