5 Expert Tips You Should Read Before You Buy Your Home

"Purchasing a new home is a huge step in your life and you want it to go as smoothly as possible. Here are my expert tips that you should read before you buy your new home to keep the process as seamless as possible." - Brenda Gately

1. Secure Your Finance

The first and most vital consideration is finance! Without access to funding, there is no point in looking for a property. When you’re applying for a loan, banks want to understand all about your income, your partner’s income, assets, existing debts and liabilities to work out whether you will be in a position to make your repayments. The upper and more stable your salary, the more likely you are to have your loan approved. If getting a loan on your own looks like a mission a guarantor may assist you over this hurdle.

2. Factor in the Extra Costs

There are many other costs involved in buying a home, and you should know all expenses before jumping in. The primary biggie is stamp duty this is calculated by the State Revenue Office based on the purchase price and may run up in the tens of thousands.  

There are a couple of ways to scale back the stamp duty like applying for FHOG (First Home Owners Grant) and First Home Buyers Assistance Scheme.  First Home-Owner Grant ($10,000) is available for first-home buyers purchasing a brand new home with a value of less than $750,000.  First Home Buyers Assistance Scheme gives you a full or partial exemption on stamp duty and is available to you if you are buying your first home and it is valued at less than $800,000.

Other fees you will be liable for are Land Title fees, PEXA (electronic conveyancing) fees and property search fees.  Extra fees and costs can be alarming it is best to know these extras as you progress forward.

3. Seek Expert Help

Knowledge is power and knowledge is the key to smart buying. So if you’re new to the property market, it’s important to get expert advice, especially for the legal side. It's wise to contact a couple of agents or conveyancers to learn what's involved in regard to the legal process before you start. Your conveyancer can guide you and explain the contract legalities with you to ensure you’re doing the proper things with regard to the process and steps.

4. Do Your Research

It’s important to remain realistic when chasing your dream home and be aware that agents can pull the wool over your eyes with regard to defects, problems with the structure or things like mould, plumbing problems, pests, etc. You should always consider hiring a building inspector to inspect the property with a fine toothcomb before committing. This way, you recognise what you’re getting yourself into before you set your offer.

5. Are You Financially Fit?

Ask yourself these questions: Are you able to put down a deposit and obtain your finance? Are you able to service repayments and still maintain your current lifestyle without sacrificing too much? Sometimes people jump into property buying without carefully working out their budget as they get swept up in the excitement of it all - it's very easy to overextend yourself financially. Consider carefully your current financial situation including your current debts, salary, job security, future and think very carefully if you're able to proceed with this huge step.

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