So you have decided to take the plunge and become an house owner. Congratulations! You have made a very smart decision that will help to secure your financial future. The following are some quick tips before for purchasing your first home.
1. Determine what you can afford
Review your salary, level of debt, cost of living as well as the repayments that you would be faced with on your ideal property. Make sure you are honest with yourself when it comes to lifestyle expenses to prevent you from over-stretching.
2. Get your financing pre-approved
Do it before you start to search. Don’t risk the possibility of missing out on an amazing property due to not having your finances organized ahead of time. Make sure you shop around since right now banks are offering very competitive rates.
3. How to purchasing what you want for less money
Checking out a neighboring suburb. It may be only a five-minute walk away, yet be a lot less expensive. If you are unable to afford your favorite area, think about what you like the most about it and see if you can find these same things in another area.
4. Top features to watch for
Some of the major items you will want to look for include good land size and internal size, good floor plan, close proximity to transportation and shops, plenty of natural light, a quiet suburban area away from traffic noise and major roads, and off-street parking ideally. The first property that you purchase won’t be your last. So when it comes to smaller things be willing to make some compromises but not on the items listed above.
5. Properties you should avoid
Frequently company title companies have by-laws that restrict the right of the owner to rent their apartment. Right now that might not matter to you. However, if you ever would like to sell it or rent it out in the future, company title might be problematic. You should stay with strata apartments . There are plenty of them. You should also avoid new apartments that are located in inferior areas. Often they feature attractive price tags since the site was purchased cheaply by the developer.
6. How To Recognise Potential
Walking into an untidy and dirty property is very off-putting. However try to look past the mess. Think about what it would look like with a professional clean and new carpet and paint. A property that is poorly presented in a good location can be a true gift for budget-minded buyers since you won’t be faced with as much competition.
7. Purchasing at Auction
It is possible to make an offer before an auction but you are at risk for paying more money than is necessary. Usually pre-sales take place when there is a lack in interest or when an individual buyer is offering much more. Decide on your walk-away price ahead of time and go to some auctions so that you can experience what the atmosphere is like and observe a couple of bidding strategies. Organise contract amendments in writing ahead of time. If you prefer to not do your own bidding you can authorize somebody else to do it for you.
8. Bidding at auction
Start low if you begin the bidding. Project plenty of confidence so that the other bidders believe you don’t have a limit. Your bids should be made assertively and quickly. It is a sign of weakness to agonize over your next bid. Call our offer out in its entirely ( say $250,000 rather than in increments like $3,000). If it will pass in, be sure to be the highest bidder since usually you will be given the first right to negotiate after. Stick with your walk-away price. It is better to be disappointed in the short-term than to feel remorse in the long-term.
9. Making an Offer
Do not offer your maximum right off the bat, since vendors always assume you will be able to do better. Your offer should be in writing and you should let them know you have pre-approved finance. To make your offer more attractive, signed a contract and have a deposit check attached. If you are rejected, search for ways to assist the vendor. Offer an early release of your deposit or a shorter settlement in exchange for them accepting your price. After a couple of rejected offers, you can try to offer an odd number like $337,200 rather than $340,000 since it is implies you have stretched your finances to their limit.
10. Obtain a building and pest report
This is something that is highly recommended. However, there are also ways that you can identify major defects on your own.They include searching for dark stains surrounding skirt boars and water stains on the ceiling, which might indicate rising damp or leaks, sagging floors, or the power board since the electricity box so that you know how old it is. Also check the water pressure by turning on a tap.
