We live in a society with an ever-changing market. Yesterday’s prices are gone and tomorrow’s prices are yet to be determined.
Property… The word on the tip of everyone’s tongue and always a good topic of conversation. Despite property getting increasingly more expensive for Australians, there is still a huge demand to get into the market. With an increase in property prices, there’s an increase in urgency to break into the market.
When is the best time to buy you ask? Yesterday.
You’re about to embark one of life’s greatest journeys. What should you prepare and consider when deciding to take the plunge and buy a property? Here are a few things to think about before becoming a first home owner.
When is the best time to buy? Should I wait for interest rates to decrease?
While you wait for interests rates to decrease, property prices may increase. With the market being so unpredictable – Now is a better time than ever to buy property.
Are you ready to make an investment?
Are you able to pay off a mortgage and still live a happy and fulfilling life? What are the lifestyle changes you’ll have to make to accommodate your higher expenses and are these changes going to compromise your happiness?
It is important to speak to a professional regarding finances and whether real estate is a good fit for you. Consider what you can really afford. Keep in mind that home ownership comes with expenses other than just a mortgage, like home and contents insurance, utilities costs and council rates.
Job security… Do you have it?
When job security is tentative, committing to a long-term expense is daunting. Lenders prefer to see an established, long-term job history with no gaps in employment. Make sure you ask your mortgage company if they offer mortgage protection benefits. Do not underestimate the impact job stability and income can have on the buying process – should you really be considering taking on a mortgage if your job can’t offer security?
Do your research!
Deciding where to buy your first home is one of the biggest challenges. Thoroughly research the area you’re looking to buy in. What does growth look like in that area over the next ten years? Do you have easy access to public transport, schools and amenities?
Unless you want to live rural, these should play an important role in your decision making.
What affects will developments have on house prices in the area?
Are there any big developments planned nearby? Developments can severely impact the value of the home you’re thinking of buying. They can also bring benefits for residents in the area. As the population in an area increases so does the need for better services. This can be a catalyst for governments to bring better infrastructure to your area.
The search for the right property can take longer than you think.
Where to next? Once you’ve decided on an area and found your dream home.. make sure you put these few things on your To-Do-List!
Get legal advice!
This is a must when buying a property. Always get a solicitor or a conveyancer to review the contracts before signing.
Have you considered getting a building inspection done?
Make sure you get a building inspection done even if the property is brand new. Builders often pick up on problems that buyers would never notice and know exactly what to look for. Getting your own inspection done ensures the inspection is independent and honest. To find a registered building practitioner, visit the Victorian Building Authority website.
You should also consider getting a professional pest inspection to check for termites or other infestations. For more information, visit the Termites page on the Victorian Building Authority website.
Remember, buying property is not for everyone. Good luck on the hunt!