Tips For Buying

 

Buying Tips

Buying property is one of the biggest commitments you will ever make and the whole process can be daunting especially when you are a first home buyer. It often easy to feel overwhelmed when there are many different properties on the market.

Here are a few tips that you can use to make sure the whole process is smooth sailing.

 

Budget

This one of the main things that you need to sort out in the beginning. This will help you “filter” the properties on the market. Make sure you discipline yourself with the budget, don’t be overly ambitious. As a first home buyer (and this rule applies to anyone buying property), you should never go above your budget and financial means. If you go above your means, it can be detrimental to you in the long term.

Aside from budgeting for the property price, make sure you budget side costs, so you don’t get any nasty surprises from fees that you may not be aware of. A general rule of thumb is to budget an extra 10% of the purchase price for;

  • Stamp duty, fees and taxes
  • Registration fees
  • Legal fess
  • Home loan costs and Loan Management Insurance

To offset some of those costs, be aware of the "First Home Buyer Grant", which is provided by the Australian Government for first home buyers when they use services of a licensed real estate agent.

 

Sort out your finances

This goes side by side with budgeting; you have to make sure you can obtain a pre-approval of a loan, as it would give an idea to how much you can borrow. If you don’t, it can be counter-productive; you may found your perfect home and then realise you can’t buy it because you couldn’t get your loan approved.

If borrowing money from a financial institution to buy property, speak with your financier or your Finance Broker to find out your borrowing capacity and arrange the best loan to suit your needs.

Ask us to assist you, as we have an in-house broker that can get you the best loan suitable for your needs.

 

Research, and then more research and research some more!

This cannot be stressed out enough, make sure you do your research when you are searching for a property. Buying a property is a big commitment and often it lasts for a lifetime. As with any big purchase, make sure you do all your research on your dream home.

Whenever you start your research, make sure you look at localised information and not national information, as certain activity in one area is completely different to another area. It would be beneficial for you if you speak to an Estate Galaxy agent as we have localised information which is not easily accessible. Estate information is constantly changing and it can be difficult to find the most up to date information but in Estate Galaxy we have the most up to date information in your area.

Once you see something you like make sure you always inspect the property. Never skip the inspection, EVER! A property may look beautiful at the front can be a complete train wreck inside. It will also allow you to picture yourself in the home and whether or not it suits your needs or wants. Get a builder’s inspection or strata report. You don’ want to be surprised with the faulty foundation or bad wire work later when you have moved into the property. It may cost you a fee now but it is beneficial in the long term. Also get a sanity check on the property so you don’t become ill once you moved into your new property.

 

Don't invest too much emotional energy

Even though it is difficult to think objectively when purchasing your first home as it is big commitment, try to minimise the emotional energy in the process. That way you don’t break your budget and regret in the future. To help you, list your needs and wants on the type of home you may be looking for; so you won’t be overly impressed by unnecessary extra features in a potential home.

While the search to find your home will be an emotional one, it’s best not to let your emotions get in the way when it comes to transacting a purchase. This especially rings true when it comes to auctions, as under the circumstances, it’s easy to get carried away.

While the search to find your home will be an emotional one, it’s best not to let your emotions get in the way when it comes to transacting a purchase. This especially rings true when it comes to auctions, as under the circumstances, it’s easy to get carried away.

 

Don’t be impatient

When you have been house hunting for a while (generally everyone house hunts for 3-6 months before finding a dream home), you can get tired and frustrated and it can be tempting to buy the next property available. Make sure this does not happen as you may regret purchasing the home very soon and you will be back to house hunting again.

Whenever you make an offer on a home you really love, make sure the offer is conditioned. Don’t just wing it with the offer as you not know you are over paying and you may not be getting the best deal. Make sure you have your broker assist you in making an offer and get it conditioned, so you can back out from the offer during a certain period of time,; just in case you may have second thoughts or found something better.

 

Do not do it alone

A good real estate agent, a lawyer, building inspector, mortgage broker and a trusted open-for-inspection buddy. Even if you’re buying on your own, you shouldn’t face the process alone. There are specialists whose job it is to cover those areas you didn’t even know you didn’t know.

Build a relationship with your agent to help you with this process, to make sure the whole buying process is completely hassle-free. At Estate Galaxy, we strive for the best for all of our buyers and we make sure all of them have a completely positive buying experience.