Affinity Property can help you get ready to buy a property with his list of expert tips. In this guide, We bring together over 100 years of combined real estate experience to present you with the best tips when buying a home.
In this day and age, buying a property can be difficult. That is why it is imperative that buyers are prepared and know what to expect before making any offers. Our free digital property report can help. It tells you the market value of your property including recent sales, rental history, suburb report and more.
Buying a home will be one of the biggest financial decisions you ever make. You might first think of upfront costs, like the deposit, stamp duty, and insurance cost.
You should plan ahead for the long term. Mortgage repayments and other costs should be prioritised. Also, make allowances for costs such as repairs, maintenance, and utilities.
Not only that, but you should make sure that your budget can accommodate time for fun and enjoyment. Putting a set portion of money towards leisure is both realistic and practical. The last thing you want is to resent your own budget – if it is too strict, you will not stick to it.
As you plan, make sure to give yourself plenty of time to consider all your expenses and craft a budget that you can stick to for years to come. Buying a house is not a one or two-week commitment, it can take decades to pay off your loan.
While this can sound daunting, through careful planning, you will have a budget that works for you.
Once you’ve planned your budget and know exactly how much you can afford to spend, knowing your own limits should be easy. Your next step as you get ready to buy should be to set a clear limit on what you can afford.
Your first home might not necessarily be your dream home. That’s okay! The important thing is to get on the property ladder.
If you are unable to pay back your home loan, the bank can repossess your home and re-sell it to make back as much money as possible.
Mortgage Stress is when a person pays 30% or more of their pre-tax income on their mortgage repayments. This is a sign of financial trouble and suggests that the debt is too large for you to service.
When planning to buy a home, aim to be below the mortgage stress point.
When preparing to buy your home, make sure that you save for as big a deposit as you can possibly put together. This is helpful for several reasons:
However, if you have a high amount of personal debt, it might not be possible to pay it all off in a reasonable timeframe. There are options such as balance transfer offers and debt consolidation loans that can help you.
To reduce excess debt, your first course of action should be to consult with a qualified financial advisor.
When you get ready to buy, remember there is help out there for you. There are many government programs to assist people in buying property. Before you buy a home, you should research whether you are eligible for these grants and programs.
Such programs include: