5
Do your homework
There is a lot to consider and plenty to
research. The first thing you need to do is work
out how much you can borrow. This is where
our services will really help you. Make sure you
have an accurate and detailed budget that
takes into account all expenses associated
with purchasing a property, including stamp
duty, council rates and other fees.
We can help you identify these extra costs. Ask
us for our budget planner if you don’t already
have one.
Other considerations:
•
Do you want a freestanding house, a
townhouse or a unit.
•
Do you want a renovated or un-
renovated property?
•
How many bedrooms do you need?
•
If your budget allows, would you prefer
a pool, second bathroom or extra
garaging?
•
Are any of these features essential?
Decide your priorities
and if necessary the
options you are willing to trade off to save
money.
Location is important.
A property in an
attractive street in a popular suburb with
easy access to transport, shops and schools
is always a good investment. Consider the
aspect. Does it have a nice outlook, look
appealing from the street and have lots of
natural light? Take into account whether it
will be easy to sell when your needs change.
Inspect it at different times of the day to
get an idea of how different factors, such as
morning sun or peak hour traffic, affect its
appeal.
You should also think about how the property
can grow with your lifestyle. By having a clear
objective, these questions will be easier to
answer.
Research your area
Ensure you go to many open inspections
and do your research on the internet before
purchasing to ensure you have a good
indication on property prices in your desired
location. If you find that you cannot afford to
buy your dream home in your desired location
consider adjacent suburbs that may be more
affordable.
Account for all costs after the
purchase
A mortgage is a big commitment and you
may have to make changes to your regular
spending practices if you are to meet your
repayments with ease. Many first home
owners forget to budget for things they
haven’t been used to paying for themselves
like electricity, water and other utilities and
items such as insurances.
Budget for maintenance and even simple
things like stocking up the fridge and pantry
for the first time – many of the things we take
for granted when living at home.
Make sure you do not stretch yourself to
your limit.
You need to fully understand the
impact of your regular spending levels on your
new budget. Interest rates move constantly, so
you will need to allow room in your budget for
interest rate increases and other unforeseen
additional spending. When interest rates drop,
simply maintaining the same repayment is
one of the fastest ways of paying off more of
your loan and building a buffer if rates rise
again.
PURCHASING YOUR HOME
