Recent Buying Selling Lifestyle Investor Tenants
Recent Buying Selling Lifestyle Investor Tenants
Buying

Preparing to Buy

05-Apr-2021
Written by Sarah Newton
Deciding to buy property is a big decision to make. Whether you’re a first home buyer or looking to make a wise investment for your portfolio. To help ease the decision making process, below is a guide to navigate buying a home.

Evaluate your finances and budget
When it comes to financing there are a multitude of factors that will impact how much you can borrow from the bank. A mortgage is a significant financial responsibility and it’s a good idea to contact your accountant to figure out what you can afford. Knowing this will help when you start searching for a property. Additionally, apply for a copy of your credit file and make sure you clear away debts. If you have bad credit, it might not be the best time for you to purchase a home or investment property.

The cost of buying a house
It pays to seek advice from a financial advisor, accountant or lender to truly get the scope of the full costs associated with buying a home. Here is a list of costs you will likely incur:
> Deposit
> Stamp duty.
> Legal and conveyancing fees
> Finance and insurance costs.
> Building and pest inspections
Other costs to consider are ongoing mortgage repayments, utilities, moving costs, council rates and strata fees, home and contents insurance and mortgage protection insurance. Not to mention repairs and maintenance to your home. It’s wise to have a savings account for emergency repairs.

Getting home loan pre-approval
Otherwise known as conditional approval or approval in principle, securing pre-approval before even searching for your home is ideal so you can know your price range. By providing your bank or lender with your financial details - such as your credit report, savings, income and investments - they will be able to review the information and grant you with pre-approval to borrow up to a certain amount.

Buying an investment property
A different set of criteria for choosing the type of property to invest in is necessary. For strong capital growth you need to find a property that will increase in value. Look for areas with high rental yields compared to the property price, research recent sale prices for an idea of prices, is there a strong rental demand? Look for tight vacancy, is there proximity to schools, shops, hospitals, public transport? What will the maintenance costs be like? Also how many bedrooms, bathrooms and parking spots are there?

Property inspections
During inspections, investigate the utilities and sus out the new neighbourhood! It’s also a great idea to get a qualified building inspector to make an assessment of the home. They will look for structural defects, pest infestations, faulty wiring, plumbing and drain issues, asbestos, lead paint, and more.

Preparing for purchase
Finally, you are ready to make an offer! When you’ve decided on a figure, reach out to the agent and let them know how much you’re willing to pay and your deposit amount.

Next, simply exchange contracts and pay the deposit. Both you and the seller are not legally bound to the sale until the contract of sale has been signed and swapped. If you’ve bought through private treaty you will have a cooling off period. This is not available when sale is made by auction. During this period you can cancel the sale if you change your mind, but you may be required to pay a penalty.Once the balance of the purchase price and Stamp Duty is paid, the settlement of the property has been made and you will receive your keys and title deeds.

First home buyer's grant
If you haven’t purchased a property before, there’s a good chance you are eligible to receive the First Home Owner Grant (FHOG). FHOG is a national scheme, but each state funds its own and the amount varies state-to-state. To apply you will need to submit your application within 12 months of purchasing your new home.

Contact us
If you have any queries we are happy to help! Contact Ian Gray on ‪0419 170 685‬ or Lochie Craig on ‪0408 211 780‬ today.‬‬‬‬

SOURCE: Open Agent

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