Things to Consider Before Buying a Home
Buying a home is an important event, it might be the biggest financial event in your life. You want to make sure you are well informed before making your decision.
Having bought and sold our own homes and investment properties in the past, as well as running a real estate agency, we would like to share from our experience with you.
We understand how difficult this decision can be, in scanning the market for days and months to find the right property, choosing the right finance, negotiating the best deal for yourself and going through all the paper work hassle. But if you are well informed in advance, it could be one of the best experiences of your life.
Buying your own home to live in
Buying your own home for your family can be a rather emotional experience, since it impacts on many aspects of your life. You have to consider many aspects:
Choosing the best area to live in
Ask yourself:
How far is it from your workplace?
How long will it take to travel to work every day and back?
How is the traffic in the area? Are there any freeways or motorways in close proximity?
How good is the public transport network in the area?
How far is it from places you are more likely to spend your time in (how close is it to where your family and friends live with whom you want to be in regular contact)
Are there any good childcare centres in the area? (for families with small children)
Are there any good schools in the area for your children?
Are there good facilities in the area (shops, parks, hospitals, etc)
What are the characteristics and the demographics of your neighbourhood which will impact on your possible future friendships and those of your children
What are the growth prospects in terms of capital growth for the particular area?
Choosing the Right House
Should I buy an established house or should I buy a new house and land package?
New houses might cost a little more at the beginning but they involve less maintenance and expense over the long term. They also mean less work on the house after hours. You need to weigh up the pros and cons.
What type of house to buy (lowset, highset, brick and tile, queenslander, old or new, how many bedrooms, bathrooms, land size, etc.)
What are my ‘must have’, my ‘would be nice’ and ‘I could do without’ features that I am looking for in a home?
Last, but not least: is it the kind of house that can be easily sold if we have to sell it in the future?
After viewing a number of houses:
Which house is meeting all my ‘must have’ and some of my ‘want’ features?
How does it compare price-wise with other similar properties listed in the area?
What is the best price to offer that would best suit my interests and also lead to an accepted offer?
What terms do I want to be included in the contract of sale:
- in how many days should I settle on the house?
- what are the fixtures that should remain on the property after the sale?
- what things I would like to ask to be left on the property after the sale?
- how many days should I request for finance approval?
- what other special conditions should be included in the contract?
We recommend raising all the above issues with your solicitor.
Choosing the best finance for you
Ask yourself:
Should I go directly to a bank or should I choose a mortgage broker? In many cases using a mortgage broker is a better choice, unless you have a special relationship with your bank manager, and are self-employed. Only use a mortgage broker who is paid entirely by the lender – you should not have to pay any fees yourself for the services of the mortgage broker. Good mortgage brokers are motivated to get the loan approved, and also should know which lender is best for you. It can make a huge difference.
Do I want a fixed rate or a variable rate? When they start raising fixed rates, its often a good time to fix. If they have been reducing fixed rates recently, its usually best to go for a variable rate in most cases. Talk with a financial advisor about this, don’t take what we say here as financial advice.
Should I pay off my house or should I only pay the interest? Normally its best to pay off your own residence as fast as you can because the interest is not tax deductible. Again, talk with your accountant or financial advisor.
If you are interested in us helping you find a property based on your particular needs, please see our BUYERS ADVOCACY service offer.
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