7 tips for BUYING YOUR DREAM HOME
Strategies to stay ahead of a competitive market
Whether you’re starting out on your journey to buy a home or are on track with your savings goals, getting into the property market can seem confusing and a little daunting.
There are still opportunities for home buyers in the market, so don’t be disheartened by what you are hearing.
To help with your property goals, Brad Cramb, CEO of distribution at Aussie, shares his insights into the seven things you need to know before buying a home.
1 GET YOUR FINANCES IN ORDER
Knowing how much money you currently have, what your expenses are and what level of repayments you can make before you start house-hunting will help you avoid any disappointment. This includes how much you can afford for a deposit, stamp duty, fees and home loan repayments. Reviewing an updated record of your savings, income and spending will help you to budget and assist in getting you a home loan sooner.
2 ASSESS YOUR LIFESTYLE NEEDS
Before you even start looking at properties, take it back to square one. Think a bit more about your motivations for home ownership and your future needs – will you be changing jobs soon? Are you thinking of having children in the next few years? All of these and more are factors you might want to consider when you’re getting ready to buy a property. This is because the type of home you buy might differ depending on your financial and lifestyle needs now and in the future, so it’s worth considering these before you jump into buying a one-bedroom apartment when a three-bedroom house would be more suited to a growing family, for example.
3 UNDERSTAND WHAT GOVERNMENT INCENTIVES ARE AVAILABLE TO YOU
Being aware of the latest government schemes and grants could speed up the process. First-home buyers may be eligible to access the First Home Owner Grant or the First Home Loan Deposit Scheme, along with other state government grants and incentives. Be sure to do your research or speak to a mortgage broker about the different options that are available to you.
4 KNOW THE DIFFERENCE BETWEEN FIXED & VARIABLE
A fixed rate means it’s locked, and during the term, your interest rate and your required repayments won’t change. A variable interest rate home loan can change, with lenders
increasing and decreasing the interest rate attached to the loan at any time. There are many options available, and it helps to know the pros and cons of each based on your individual situation.
5 SEEK HELP FROM AN EXPERT
With lending conditions still favourable, Australians should make the most of all the help and information that’s available to them. Mortgage brokers and property experts exist for a reason – buying a home is not always straightforward. Even if you consider yourself to be pretty knowledgeable about the process, a broker can alleviate stress, help you understand your options and decipher the jargon.
6 CONSIDER WIDENING YOUR SEARCH
Researching the area you want to buy in and inspecting as many properties as possible will help you to understand property values in your preferred suburbs. If you’re not sure where to get started, Aussie’s Suburb Spotter Map can help you spot and compare suburbs across Australia that you could buy in, based on your deposit amount. You should also consider widening your search, as property prices may be more affordable just a few suburbs away from your preferred location.
7 BE READY TO MAKE AN OFFER
Get pre-approval on your loan application so you’re ready to act when you find that perfect property. Pre-approval is a formal indication from a lender that they are likely to approve you for a specific home loan amount. It means you can go into your property y hunt prepared, knowing what t your budget is.