Find Out How Much You Can Afford
Setting your heart and mind on the wonderful five-bedroom, three-and-a-half-bath property on a prestigious location could set you up for frustration if you don’t know what you afford.
Have a closer look at your regular monthly income and your monthly budget. Consider every expense you’d have to make per month and then figure out how much amount you can spare for your home loan or housing costs. Also, take into consideration the factor of new home-related expenses such as insurance, taxes, and possible increased utility bills.
If those figures are not adding up to what you want, then take start changing your spending habits. Do you really have to subscribe to that celebrity magazine? You may realize expenses like this are not really necessary. You can also pack your own lunch to work which can be much cheaper compared to buying from the cafeteria.
Consider Your Needs and Wants First
When working with a budget, sometimes you have to make adjustments. Understanding what you really need can help filter your choices and also make the best decisions when it comes to making an offer.
Make a list of your needs and wants. Don’t ignore things like the community, commute and the accessibility of schools, hospitals, and leisure parks. Once you have this list, take it with you when you check out home listings or when looking at houses and write notes. This process helps you make decisions more quickly.
Explore Home Loan Options
Since most homebuyers are not going to pay for their house with cash, you’ll probably need some house loan. A house loan is simply a loan that uses a piece of property, like your new house, as collateral, providing the bank the right to take the house if the person taking out the house loan doesn’t hold up his or her end of the deal.
Think about your long-term strategy when you’re looking at house loan choices. You might be one of those individuals who never plans to buy another house, so maybe you’re more enthusiastic about a 30-year, fixed-rate house loan. However, you might look at this house as a starter residence and may consider purchasing another property after a couple of years. In this case, you need a more flexible loan term.
Contact different banks and check out their home loan programs. Don’t rush into making choices and make sure you fully understand their payment options, interest rates and other important items in the agreement.
If you use a broker, you will take away the risk of affecting your credit rating as they can qualify you before going to banks. Platinum Homes can help you with a broker and general financial information.
Explain the loan types: Variable, Fixed, Principle and Interest
Work With A Trusted Real Estate Agent
Work with a real estate agent whom you can trust. You would want someone who can also give you quality advice so you won’t end up spending your money on a property that is not worth your hard work. Ask family members and friends for recommendations. Your real estate agent must be knowledgeable in the market of the location you plan to move in to.
Set Up A Home Inspection
A house inspection is very important. It helps you make a wise decision before finally purchasing your new house. You need to make sure that the entire property is in good condition and worth your hard-earned funds. If the home inspector discovers a problem, you’d be able to talk to the home seller about getting it repaired, and if you find out that everything is in good condition, then you can have full confidence in your purchase.
So are you ready to invest in your new home? We hope these tips will help you make the right choice for you and your loved ones!
What are the pros and cons of Buying an Existing Home to Building a New Home?
Buying an Existing Home –
Pros: in there now,
Cons: will have maintenance issues, if it’s a new home construction and you are buying as house and land you will pay more stamp duty costs, house might not be the complete design you are looking for, harder and more costly to make changes.
Building a New Home – buy your land first and then build
Pros– save on stamp duty costs, new home, new look, new feel, no maintenance, takes longer, if you use a project builder it’s less stress on you – you just move in, if you are managing the project yourself – can be more expensive because of lack of experience, you get the house you want, colours and styles.
Source: Partners in Property Australia help people create financial through property working with investors and entrepreneurs. Whether you have property and no experience, property and no money, money and no property we have the experience to help you invest in various property deals that suit your needs and we project manage from start to finish.
Contact PIP Group at www.pipinvestors.com.au or 0428 58 1183