There has never been a better time to be in the market for a property than now, with the official RBA cash rate at an all-time low. It is also worth noting that a decrease in the number of available homes. And favorable lending circumstances, are assisting in the market’s recovery. One of the most significant investment you will ever make is buying a property in Australia.
Below are some things to consider in preparation for your purchase
Think about how much you can afford:
This is the most crucial phase, and it must be completed before you begin shopping for a property. Use an online budget planner to figure out how much you spend each week, or month as a starting point. You might also utilize free technologies like Pocket Book. A budgeting program that analyses your account information to create a highly precise budget.
Keep in mind that regardless of how much you can borrow, you will need at least 10% of the property’s worth. When planning your budget, remember to factor in extra charges like stamp duty and Lenders Mortgage Insurance. While this is a helpful reference, the best approach to determine how much you may borrow is to speak with a loan professional. That can provide you with the most up-to-date rate and credit qualification information.
Forgotten costs in Buying a Property:
Unfortunately, the following fees, charges and expenses are often forgotten;
Council rates – Depending on your settlement date, you will have to pay a portion of the council rates if the existing owner has paid them for the financial year.
Stamp Duty – Because stamp duty may cost tens of thousands of dollars, it is wise to utilize a stamp duty calculator to calculate how much you will have to pay.
Lenders Mortgage Insurance – If you borrow more than 80% of the property’s worth, you will almost certainly have to pay extra costs known as Lenders Mortgage Insurance.
Loan Expenses – Rather than just comparing variable or fixed rates, compare bank comparison rates, which take into account the fees connected with a loan. Occasionally, a low rate accompanied by a slew of additional expenses.
When it comes to buying a property , you can never be too prepared.
Begin by determining which regions you would want to reside in. On real estate websites, look at recent selling prices and suburb profiles. Then, talk to local Real Estate Agents to get a sense of how the market in that suburb has been going.
Use property profile reports to get a sense of what comparable properties have sold for. The house’s sales and rental history, and even an estimate of what the house is worth now. If you have located a house or homes you are interested in.
Rushing your decision-making process in buying a property is the worst thing you can do. This is most certainly your largest financial investment. And the last thing you want is to make a hasty decision because you feel obligated to say yes.
A real estate agents job is to sell the property for the best possible price as they are representing the seller.
It is also worth noting that, even if a purchase contract is signed at a private sale. Then the buyer is entitled to a 5 day ‘cooling off period’. This gives the buyer the opportunity to carry out their due diligence. If they are not satisfied, they have the opportunity to rescind (pull out) of the contract. The seller is compensate by having the 0.25% deposit forfeited to them.
Before committing to a legally binding contract in New South Wales, talk to the experts at Strictly Conveyancing.