Four essentials to know when home buying

By the resi financial blog team, 18 August 2014

Guest blog for new home buyers

Guest blog written by head of PR, and money expert at www.finder.com.au, Michelle Hutchison

 

With location, budget, interest rates, and everything else in between, it’s easy to feel overwhelmed when looking to buy a property. But while you might feel inundated with things you need to take into consideration, sometimes it helps to strip your decision back and focus on these four bare essentials.

Know the market

The current market in Australia is a tricky one. Housing prices are at an all-time high, while interest-rates are at a historical low with hikes on the horizon. First-time buyers or even those looking at buying a second property are finding it hard to tap into the housing market because of the rising property costs. But, a new home isn’t completely out of reach if budget right and plan ahead. It’s worth thinking about taking advantage of low rates and secure yourself a competitive home loan. This can make a big difference to the overall cost of the property.

Budget and spend according to your plans for the house

While it’s critical to set out your budget, what is even more important is spending your budgeted money according to the plans you have for your house. If the property is to live in for a long time, it may be better to put some money towards improvements that will benefit you in the long-term. If you’re looking at selling the property quickly or purchasing it as an investment, do some research into using your budget towards more cosmetic improvements that may be more worth your while.

Ask your lender more questions

Choosing the right lender and the right loan will have a huge impact on your ability to find the property you want. Does your lender understand your situation? Do they offer free advice and genuine help with your finances? Will you find a rate that will work with your budget? Does your loan have features that can help you save, and even repay your loan early? These are just some of the questions you need to ask when looking for a lender to help finance your property purchase.

Be prepared to haggle

When it comes to buying property, the only thing that might be ‘set in stone’ is the house. Never take the listed price at face-value – there is always room to haggle. If you opt for pre-approval, you can have the competitive edge when negotiations start on your dream property or during an auction. This is the same for home loans. Lenders are willing to negotiate so it’s worth asking if they can do a better deal.

The property-buying process is complicated enough – by taking your decision back to a few bare essentials, you can help narrow down your choices and find the right property for you.

 

Categories: Finder.com.au, Guest blog, Tips