Preparation for buying a property
Buying a home is likely to be the biggest investment you will ever make. For first time buyers this process can be especially daunting. It is therefore essential to ensure that the right steps are taken to prepare for the purchase – this will make buying property just that little bit easier.
Here are some of our tips on how to be well prepared when buying a property:
Understand what you can and cannot afford
Before you begin your property search it's important to work out exactly how much you can afford to spend on your new home. Many homebuyers do this by calculating if they can afford to pay the monthly mortgage repayments. However, there are a multitude of additional costs to consider with the home ownership process. These include legal fees, stamp duty as well as ongoing costs incurred as a property owner such as repairs, rates, insurance, body corporate etc. By taking all of these additional costs into account you will end up with a much more accurate picture of what you can truly afford.
Do your research and understand the market
Before buying into a specific market, a sound understanding of the market as a whole is crucial. In addition to this, being well informed about the key trends and conditions of your local area, can help you to make a more informed purchase decision and potentially eliminate buyer’s remorse down the track. The internet is a fantastic resource if you know where to look!
Here are a few resources we recommend:
Property portals: All of the leading Australian property portals provide current listings as well as sold directories so you can view the latest sales results in your local area. These can be used to develop a clear picture of market conditions and help shape expectations. In addition to this, they are a great source of advice in the form of blogs and articles. Examples of property portals include realestateVIEW.com.au and Domain.com.au
Data sites: If you want to take it one step further and really engage with the data then property data sites will be an invaluable resource. Sites like propertyDATA.com.au, Residex and others provide access to market trends, as well as historical sales results, median prices and a range of other information (some of which is free and other resources which incur small fees).
Agent & buyer advocate websites: These can also be a great source of information, with many individuals and companies blogging about recent local market activity.
Understand the in’s and out’s of buying
Once you’ve found a home that fits your needs and your budget, the next step is buying the property – this process will differ depending on the method of sale. It is important to familiarise yourself with the various buying methods to understand your rights/obligations when purchasing via this method. Understanding this upfront may help you to avoid making a costly mistake down the track.