5 things to know before buying a house

November 21, 2018 admin 0 Comments

1. Obtaining Finance

The first and most important consideration is money! Without access to funding there’s no point in looking around for a house. When you’re applying for a mortgage or loan, banks want to know all about your income, your partner’s income, assets, existing debts and liabilities to determine whether you’ll be able to repay the loan off. The higher and more stable your salary, the more likely you are to get the money. If getting a loan on your own seems like mission impossible, there may be ways to get a guarantor to get you over this hurdle.

2. Extra Costs and Fees

There are many other costs involved in buying a home, first home buyers will not be clued in on these extras and you’ll need to know what your in for before jumping in. The first biggie is stamp duty, this is calculated by the State Revenue Office based on the consideration or purchase price of the house and can run up into the ten’s of thousands, even hundreds of thousands! There are a few ways to reduce this tax such as applying for FHOG (First Home Owners Grant) or using the property as your PPR (Principle Place of Residence). There are other acceptable exemptions and concessions available that you can find out about by talking to a conveyancer or even contacting the SRO directly.  You will also need to know about Land Title fees, PEXA (electronic conveyancing) fees and some other costs that will need to be accounted for in your finance. Extra fees and costs can freak people out easily and it is wise to get in the know before you move forward.

3. The Process of Buying a Property

Buying a property can be very overwhelming and confusing, there is a lot of information you need to know before you dive into it. Knowledge and experience is the key to smart property buying, so if you’re new to the world of property, it’s wise to get expert advice, especially for the legal side of it. It may be wise to contact a few agents or conveyancers to find out what is involved with regards to the legal process before you begin. SDS conveyancing can go through it all with you one on one and explain the contract legalities with you to make sure your doing the right things in regards to process and steps.

4. Knowing what your buying

Buying property is a big step but although it is complicated it is also an exciting experience. So it’s important that buyers don’t get too caught up in chasing your dream home when making a potential purchase. Sometimes you can be deceived when looking at property and agents can pull the wool over your eyes with regards to defects, problems with the structure or things like mould, plumbing problems, pests, etc. Keep your wits about you when doing an inspection, and if you’re your worried about something consider hiring a building inspector to go thru the property with a fine tooth comb before committing to a purchase. This way, you know what you’re getting yourself into before you put your offer on the table.

5. Are you in the Right Place Financially?

So after doing some research and finding a property, are you ready to put down a deposit and get your finance into readiness? Can you budget the repayments into your life and still maintain your current lifestyle without sacrificing too much? Sometimes people jump into property buying without carefully laying out their budget because they get swept up in the excitement of it all, obtaining your dream home is the ultimate goal for many people and it is very easy to set aside the financial worries in order to just go for the goal. Consider carefully your current financial situation including your current debts, salary, job security, future and think long about if your ready to go forward with this huge step.