Can auction be the key to your perfect property?
Affordability is a big part of buying a property - after all, you need to make sure you can continue to lead the lifestyle you want, while still meeting mortgage repayments.
This is why it's so important to make use of a mortgage calculator and determine just how much you can afford to spend on your property, no matter how you go about securing it.
Auctions have become a big deal here in Australia, with buyers heading down to the sale room in the hope of bagging their ideal property. However, it's all too easy to get carried away in the moment, potentially leaving you with a financial headache you hadn't anticipated.
This is why you need to set yourself a strict budget and make sure you stick to it. Not only this, it's well worth doing some homework on the property you have your eye on to make sure the valuation is a fair one.
If you've never thought about buying at auction before then there's every reason why you should take the plunge. Take Melbourne for example - the city has just seen its strongest quarter for auction activity in the three months to September.
Figures from the Real Estate Institute of Victoria (REIV) show 15 per cent more auctions were held during the September 2014 quarter than they were a year earlier and there's every hope this trend will continue.
Outer and middle suburbs have seen particularly strong levels of activity, with the likes of Dingley Village and Wantirna South experiencing clearance rates of 96 per cent. Many other areas have also seen more than 90 per cent of properties that went under the hammer being sold.
No matter where you have your eye on property, make sure you've scoured the local market and secured a mortgage that will see you through. This way you can avoid any nasty financial surprises further down the line!
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