What to ask yourself before buying a home. When buying a home, its among one of the most exciting lifestyle events you’ll ever encounter. It is also a nervous one… Doing some research is important, while seeking advice is priceless!
Here are a some helpful questions you should ask yourself when making the decision to purchase a home.
What motivates you to buy a home?
Understanding your own motivation for wanting to purchase a property is incredibly important. Some reasons might be more influential than other reasons, however understanding and recognising the basis behind buying, will help you immensely throughout the process. It really sets the tone or foundation in driving your decision decisively and confidently. The decision will vary between buyers, but here are some reasons to motivate you before buying a home:
- I no longer want to rent a property
- I have saved a sizeable deposit and can afford to own my own place
- I have a good savings plan that I can easily pay for my own place
- I have worked hard and its time to successfully flow this into my personal wealth and independence
- I don’t like wasting money on rent, without making a return on my money
- All of my friends and family own a home. I want to make this happen for me too
- I want to buy an investment property
- I want to start rentvesting
These are just some of the examples of what motivates you to buy a home
Before buying a home, can you afford it?
When buying a home, you can’t simply act on motive. Affordability overrides all motivation. As you feel its time, you need to assess if you can afford it. This may entail a cash flow budget, a pre-approval from a lending specialist or perhaps a consultation with a financial planner. In determining your affordability, you need to consider if you have a sizeable deposit and borrowing capacity. Will this assessment provide a high enough budget to purchase? Do you have a secured level of employment? There are many things to consider at this point.
Other costs to consider are as follows:
- Stamp duty
- Loan application fees
- Conveyancing costs
- Home and contents insurance
- Council and water rates
- Owners corporation fees (if applicable)
All of these incidental costs can vary, particularly if its a purchase to occupy rather than invest. When investing, you obviously have a number of tax deductible expenses with the benefit of generating a monthly rental income. Take note of the upfront costs and ongoing expenses to keep the property. If your assessment leaves you with a net disposable income, you will have the sense of calmness in making a decision you know you can afford.
What does your lifestyle look like? What location will suit?
A relevant question for an owner occupier to ask before buying a home. You have a budget, you have your motive, but where do you want to live? How far are you willing to commute to work, kids drop off etc. Not all locations are the same, so at this point in your circumstances you need to address what area you want to buy. This is an interesting and challenging part of the buying process. You may have affordability, but it may not be the budget that allows you to own a home in your preferred location.
Considering the type of property you want to invest or occupy is also important to review. As one location is never the same as another, property types and styles are also similar. If you are wanting a city skyline view, that may be an apartment lifestyle. If its a brand new master planned community with schools and town centres, a standalone house may be your choice.
When thinking about the location and what is important to you, think about what type of local amenities, schools and other attractions that will make life easier and happier. Spend some time reflecting on this and it will help you filter down what suburb or location is best for you.
What will you not compromise when buying a home?
Before buying a home you may need to compromise on certain things to fit within your budget or to find a home in a highly sought after location. It is most helpful to establish a checklist of items that are mandatory (non-negotiable) and what is negotiable. When considering what is negotiable, place these in priority order. For example, you may consider a three bedroom property over your preference of a four bedroom, however this may be the last negotiable item on your list. You may have other negotiable items you’d be more willing to compromise. Some areas buyers may compromise are as follows:
- How many bedrooms and bathrooms do you need?
- Do you need multiple living areas?
- Do you want outdoor space? (i.e. backyard or courtyard)
- Do you want a low-maintenance home?
- Do you want a brand new or second hand home?
- Do you need a garage?
These sorts of questions can be endless. Take some time to ask yourself before buying a home. What am I willing to compromise to make this happen?
What should I do?
There are other contributing factors and questions to ask. These are just a few important things to consider before buying a home. Before buying a home, we recommend seeking professional property advice. At Crest Property Investments we specialise in sourcing brand new and off the plan properties for buyers. We also do not charge fees to buyers! If you’d like to learn more, please feel free to contact us. We welcome the opportunity to help you make the best property decision.
Our YouTube channel and Market Insights are also a great place to gain more tips. They provide a wealth of information to assist you with many areas relating to property.
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.
February 2023
