Buying a new home? Consider these factors first
Buying a property can be an overwhelming task for many people. There are a number of factors you'll need to consider before taking out a home mortgage to secure your home.
Buying a property can be overwhelming and a huge financial undertaking. There’s a lot of pressure to get it right. With careful research and preparation, it’s possible to find the ideal home that will suit your needs.
Whether you’re buying your first house, downsizing, or looking for your next investment, consider the following factors before purchasing a new home:
Budget
Your ideal property should fit well within your budget. That is to say, if it doesn’t fit your budget, it’s not the ideal home. Review your finances carefully to know your price range, which can help you save for your deposit. Preferably, you’d have a handle on your budget well before you start house hunting.
Don’t forget to account for the hidden costs. Aside from the property’s sale price, you must think about other upfront costs like stamp duty, transfer fees, mortgage registration fees, and the like. You can use this online property buying cost calculator to see how much you could need in addition to the sale price.
Lifestyle needs
A house’s purpose is to meet the needs of those who own and live in it. When house hunting, always have your needs in mind. Ask yourself what you want out of your new home. Are you looking for a forever home with your growing family? Is it finally time to downsize for retirement? Looking for the next best property investment?
Understanding your lifestyle or property needs helps you narrow down your choices and find the perfect home more quickly. Avoid getting swayed by fancy features and amenities that may sound good on paper but won’t be beneficial to your everyday life.
Suburb insight
Before buying a home, it’s best to take a better look at the suburb. You’re not just moving into a house; you're moving into the neighbourhood. It’s a good idea to get a feel of the community to see if it has the amenities you need and fits your lifestyle.
Looking into the suburbs is especially beneficial for those buying an investment property. As an investor, learning about the local real estate market, demographics, and other pertinent information is key to a successful investment. Get a free suburb report and know the suburb before you make a purchase.
Zoning and future developments
Zoning will affect what you can do with your land and property. It’s best to check with the local council or with a real estate professional to understand the zoning rules and restrictions in your target suburb.
Also, check if there are plans in the area that could impact your property. The suburb you choose may be perfect now, but it could change drastically in a few years based on future developments in the area. For instance, your quaint and quiet neighbourhood could turn into a busy one if there are plans to build a huge apartment complex and shopping centre a few kilometres away.
Home loans
Lastly, you need to consider how to finance your property purchase. If you’re ready to go ahead, you can start your home loan journey by applying online today!
Remember, there are home loans that cater to specific homebuyers, such as first-time home loans, bridging loans, investment home loans, and more. All you need to do is find one that best suits your homebuying needs.
Finance for first-time homebuyers
You should also speak to a financial advisor or expert if you have any queries.
Always look beyond the interest rate when shopping around for a home loan. Sometimes, lenders advertise shockingly low rates only to have exorbitant hidden fees. Keep a keen eye and don’t hesitate to ask questions.
You should also look into first home buying incentives sponsored by the government, such as the First Home Owner Grant.
Finance for those moving to a new home
If you want to sell your current home and buy a new one, a bridging loan may be a good fit. Bridging loans allow homebuyers who still have a mortgage on their current home to buy a new property without doubling up their home loan payments.
For those who already own their homes and want to move, you can choose to sell your property and use the proceeds towards buying a new home. Or you can take out a home loan to buy a new home and use your existing property as an investment.
Finance for investment property buyers
Investors will be happy to know that there are home loans designed specifically for investment properties. At loans.com.au, we offer investment home loans for those buying established properties, building one from scratch, or for expats who live abroad but want to invest in Australian real estate.
Find out in under 2 minutes if you qualify for one of our low rate home loans.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
