Things to consider when buying a house
In Australia, owning a property is a coveted dream we all grow up with. And why not, considering the increasing property prices and the financial and emotional security that comes with owning your own abode, buying property is definitely a favorite hobby for Australians, and with good reason, too.
Undeniably a great tool to build your wealth, it is also important to remember that all properties are not made equal and not exercising the right amount of caution before your purchase may leave you high and dry with an unwanted loss generating asset on hands.
To ensure your biggest investment decision is a profitable one, here are few things you must consider when buying a house:
- The location – Where to buy a house is an important factor to consider when you are buying one. Choosing a property in a family friendly area with amenities such as public transport, malls, parks and schools in the vicinity mostly ensures the property is tenant friendly and popular with buyers as well. While buying property in popular suburbs may be an expensive dream, it may be a good idea to go for the next booming suburbs to get max appreciation on your property in the future.
- Property growth and investment strategy – Whether you are a first home buyer or an investor, it is important to buy a property that will grow its value in near future. Are you looking for steady rental income or a quick gain by selling the property in near future? Think what is more popular in your chosen area – flats, units or homes? Even if it is your first home, you might want to use the equity in your home later to build your investment portfolio and it helps to have a property that will grow in value.
- The building and construction – Apart from pre-settlement inspection, it is a good idea to spend some more on a building inspection before buying any property to find out any inherent building defects or leakages that can cost a fortune to fix in the future and bring down the value of a property significantly.
- The costs – While you get ready to purchase your dream home, remember to save at least 5% of the purchase price to cover costs such as mortgage fee, stamp duty, taxes, loan application fee and other associated costs. Very often, buyers forget to account for these accessory costs only to find themselves short of funds at the last moment. Avoid this situation by accounting for the costs up front. Your mortgage broker can help you understand the associated costs and you can also calculate the stamp duty payable. Also, don’t forget to check your State website for FHOG and other discounts available to first time buyers.
- Financing – The mortgage rates in Australia are at an all time low and with stiff competition in the market. Borrowers can get low interest rates on home loans with all the essential home loan features they need. It is advisable to get a home loan pre-approval before you start looking out for properties to avoid disappointment at a later stage. Before you apply for a home loan, check your borrowing capacity and we provide you the checklist of loan documents you need for your home loan application.
- Council plans and environmental zones – Another important thing to check before buying a property is the future development plans for that area. You don’t want a flyover running ahead of your ‘now’ serene property or a high story building blocking the sea view, reducing its value considerably. Further, if the property lies in a flood or fire prone area, your insurance may not cover you against these natural disasters or the premium may be too high for your liking.
Buying a house is an important financial decision with long-term implications. We help you get the max for your money by offering the best home loan deals and low home loan rates through online mortgage comparison. Compare mortgage rates for most competitive rates in the market. You can also get in touch with our expert brokers and have your home loan queries answered free of cost.