Tips to remember when considering a property

Choosing the right area to buy in is important and not just from a capital growth point of view. Where you live becomes a big part of your life and essentially forms the lifestyle you live. Consider the distance you are prepared to travel to work every day, is there a direct public transport route? Are there adequate amenities for your needs and your family? Find out where the nearest hospitals, schools, shopping centres and recreational spaces are all located. These things all have an impact on your everyday life and happiness.

Be prepared to act quickly, especially once you have found the property you want. Whether it is the first property you spot or you’ve been looking every weekend for a year, if it feels right, is in your price range and you’ve done the necessary checks then go for it before someone else beats you to it. On the other hand, if you’re not sure then don’t be pressured to act quickly or let yourself get talked into buying a property you don’t like.

If you are interested in a property, keep up communication with the agent. Make sure they know you are interested so you don’t miss out to another buyer who was more proactive. Give yourself every chance of buying it.

Try not to let your emotions get in the way, which is sometimes easier said than done. Buying a property can be a rollercoaster ride, particularly if you are buying at auction. The worst thing you can do is to get carried away and go beyond your budget. If you feel you have become too emotionally attached to a property, ask a friend or family member to bid on your behalf. Going beyond your means could have a huge impact on your future financial plans and goals. It is better to play it safe and always consider future events that could impact on your ability to repay your loan, like job security, interest rates rises, health and starting a family.

Know when to compromise, when to stand your ground and when to walk away. While compromises will always need to be made when buying property, just make sure they are reasonable and well thought out. Waiting for the perfect property to come along could take forever, settling for less than perfect now could mean moving up the property ladder a whole lot quicker.

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5 Signs You’re Ready to Buy

You feel it in your fingers, you feel it in your toes: The property market is humming. As the construction of new homes keeps on moving up across the country, more and more homes are likely to become available in your area.

But how do you know if you’re actually ready to buy? Let’s take a look at the five things you need to know before you take the plunge and buy that home – are you prepared to make a move?

Key indicators

Ready or Not?

You feel it in your fingers, you feel it in your toes: The property market is humming. As the construction of new homes keeps on moving up across the country, more and more homes are likely to become available in your area. Whether it’s a calm three bedroom villa in a leafy outer suburb or a townhouse near the hustle and bustle of the big city, or even a country homestead with an acre or two, the options are all around you.

But how do you know if you’re actually ready to buy? We’ve dealt with a lot of people purchasing property in our time, and think these are some of the key indicators that you are truly ready to take the plunge.

You’ve got the deposit

In this day and age, it’s pretty difficult to walk up to the bank and get a 100 per cent home loan – you have to bring something to the table. Saving up for the deposit on a first home is the crucial first step to knowing you’re in a good place to buy. It gives you the leverage to secure a better deal, and means you can avoid extra costs such as lenders mortgage insurance. Save so you can spend!

Your Credit Rating is Positive

If you’ve taken out a credit card, opened a power bill in your name at a flat or signed up for a mobile phone plan, you’ll have a credit rating. Whether it’s good or bad depends on your payment! When you take out credit in any form, you should make sure you stay on top of your payments. This ensures that you come out with a good credit score, which puts you in good stead with mortgage lenders.

If you find that you have a bad credit rating, it may take some credit repair to get back on track. Challenging incorrect listings and getting on the path to good credit behaviour are two ways to improve your standing.

You Know the Market

If your finances are in order, you’re starting to look ship-shape for a property purchase. However, that’s only the first step! You have to know the market. Can you tell a buyers’ market from a sellers’ one? Have you researched where hot spots are, and what your capital gains could be? Are there parks and shops nearby?

Understanding where you want to buy is crucial. Reports like the Commonwealth Bank Home Buyers Index identify where extreme buying and selling markets are, but for tailored advice you can also contact a local agent.

You Understand the Commitment

Remember – when you buy a home, you’re in it for the long term. Typical home loans last up to 30 years, so it’s a big stretch over which you should plan out your payments. Of course, interest rates and your financial situation will change over time, so there may be opportunities to refinance, change loan terms or even leverage your home into a new purchase. But it’s all with an eye on the long-term. Make sure you understand what you’re getting into and are prepared!

You Know it’s What you Want

We’re often told the Australian dream is owning your own house, with two and a half kids and a red door and big backyard. But times change, and with it, so do our tastes. Nowadays, lots of people prefer to own an apartment, or a more compact house close to the city. You don’t have to subscribe to what you’re told is the right type of property, because one size doesn’t fit all!

When you find the one you want, you’ll feel it in your bones. If you know exactly what you want, have the funds to get it, and understand the process, we’d say you’re ready to move forward and buy!

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