The saying, “rent money is dead money,” is no myth. It is the truth. Buying a house is one of the most important decisions you can make, especially as an Aussie who is tired of paying rent.
But as great as it is to buy your first house or subsequent ones, you must take note of some home buying tips that would help you make the right decisions.
5 Tips For Buying Your Dream House
Before you decide if you want to take a step further from renting to buying, the first question you should ask yourself is, “Am I ready for this huge step?”.
Asking this question first helps you to put things in perspective. Of course, if you ask many people if they want to get homes of their own, they will gladly tell you a resounding yes, but if you investigate further, you will find that they are not ready for that big move!
Buying your home is a huge deal, and you need to be more than convinced that you are ready to move out of your rental and go get your own home.
Have A Budget
Many people might tell you that the next step is for you to start home hunting, but this is not true. There is no point in house hunting without a budget. When you set a budget, you outline how much you own presently and how much you can afford to spend on the new home.
You need this budget to know your financial standing. If your budget for the new home is within your financial capacity, then you can commence searching for homes within that price range.
If your budget for the new home is beyond your financial capacity, then you can go ahead to seek out a home loan to aid your purchase.
Searching for homes can be a very tedious task. Now that you have set a budget and gotten insights into how much you want to spend on the new home, it’s time to start searching.
First, you need to itemize the facilities/amenities that you desire in your prospective house. This would go a long way to help you narrow your search to houses that meet your requirements.
The amenities that you should look out for when you are searching for a new home should include the following but shouldn’t be limited to them:
- Features – parking space, fencing, security features, lighting, etc.
- Location – where the property is situated, the suburbs around it.
- Amenities – schools, parks, shops, entertainment hubs, easy access to transport.
- Size – number of rooms.
There are other amenities that you might desire; add them to this list and commence your search. Ensure that you search the right ways, such as asking your family/friends for recommendations, using a quality buyers agent, or surfing property websites, blogs and editorials.
Don’t Fall For The Hype Of The Property
As your search progresses, you will come in contact with different property recommendations from people, especially agents. Rather than believing all they are saying hook, line, and sinker, it is important that you do your research.
Don’t fall for whatever the seller or agent says about the property. Ensure that you visit the property, with the permission of the seller/agent, of course, and verify the tales yourself.
Look Beyond The Purchase Price
When you find a property you can’t wait to spend forever in, you still need to pull the breaks before starting a negotiation. When paying for a property in Australia, it is not only the home’s purchase price that you should be fixated on.
This is the mistake many first home buyers in Australia make, focusing only on the price of the home and not other hidden costs such as conveyancing, council rates, FIRB approval fees, Stamp duty (state government taxes), legal fees, insurance, etc.
To be on the safer side, ensure that you inquire about all these other costs before taking any step further in the negotiation.
If Your Dream Suburb Doesn’t Work, Try Neighboring Suburbs. While you might have a target suburb or location in mind, don’t limit yourself to that location. There are situations where your target suburb might be out of your financial reach. Next, you should surf through neighbouring suburbs to find one that fits perfectly into your budget!
We wish you a happy home search!