It’s an exciting time buying a property. We have been lucky to witness many types of buyers succeed with property. However many have differing views and objectives. Regardless if you are a first home buyer, investor or owner occupier, there are some important questions you need to ask yourself before buying a property. Before buying, here are three questions that suit all buyers.
1 – How much money do I need and can I afford it?
When it comes to buying, it’s time to ascertain how much of a deposit I am likely to need. What will the stamp duty implications be. Stamp duty can differ so this is quite important to be aware of as its an additional cost above the purchase price. What are the legal costs such as conveyancing fees or other government charges. All of these costs costs are added to the purchase price.
After buying the property, you should also consider the ongoing costs. You may be able to borrow $500,000 to buy the property, but taking note of the loan repayments, estimated outgoings such as rates, insurance and/or owners corporation fees is another important set of numbers that should be checked to identifying you can afford to not only buy the property, but also keeping it. Servicing the ongoing costs is ultimately more important that acquiring it. When finding comfort that your income will cover these expenses, take another step and look at your job security. If you have an expendable job or an erratic income stream such as commissions over a salary, you need to make sure your employment will support the holding costs of the property. The most notable ongoing cost is the loan repayments, but please don’t disregard the other outgoings.
2 – Is this the right time to buy?
This question never gets old. Before buying, its a question that should be checked off more than once. The notion of owning your own home is a fantastic ambition but is it the right time for you? Many people who are close to you can add pressure and influence your decisions. Family, friends and colleagues the most likely of mentors. An important question to consider… are you are getting into the market because others are or telling you to or because you are financially and mentally ready?
3 – What’s the purpose of buying?
If you are a first home buyer, investor or owner occupier and made the decision to buy a property, the next step in the buying process is what type of property suits me and my budget. What are your objectives?
- Do you plan to live in the property? Is it for short term or long term?
- If you are buying to live in it short term, are you planing to keep it as an investment or sell?
- Are you buying a property that will suit a family?
- Do you want to rent it out and treat the property as an investment? Is it a short term hold or long term strategy?
- Are you looking for a city view, a bayside view or the mountains?
- Do you want something inner city or outer suburban?
- Will you buy an apartment, townhouse, duplex or house and land?
- Do you need public transport? Do you need walking tracks?
The list of questions and objectives can be quite extensive. Before buying, these will guide the purchasing process enabling you to buy the most appropriate property for you. If you’d like someone to help you make the right buying choice, please don’t hesitate to contact us.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Oct 2018
