As we begin to settle into the New Year, now may be the perfect time to shop for your dream home.
Unfortunately, the right property doesn’t just fall into your lap. Finding your dream home can take patience, dedication, time and lots of energy.
Thankfully, there are a few easy steps you can follow to ensure you find your dream home within your budget and without exhausting yourself.
STEP1: Identify your property needs
When shopping for your dream home, the first thing you should do is write a list of features that your desired property must have, including the number of bedrooms and bathrooms you require, whether you need a covered garage for your car, or perhaps a generous backyard for your Golden Retriever. Once you know exactly what you are looking for, you can narrow down the list of homes you wish to inspect. Try not to waste time by visiting properties that do not meet most of your requirements – unless you are willing to spend big on renovations.
STEP 2: Make the most of property inspections
If you visit six different properties in the space of two hours, chances are the homes will blend into one by the end of the day. It helps to take photos of the different properties you visit, write notes on the features you loved and hated, and always take the brochures being offered by real estate agents.
STEP 3: Establish good relationships
Strong relationships can play a valuable role in the home hunting process. By building great relationships with one or more of your local real estate agents, you will increase your chances of being shown properties that not only meet your criteria, but fit within your budget. Your local agents may even be able to show you properties that are soon to be listed. Just like many things in life, it is often not ‘what you know’, but ‘who you know’.
STEP 4: Work out all the costs
Buying a home doesn’t just mean scraping together the deposit. You also need to budget for additional costs like stamp duty, legal fees, a pre-purchase pest and building inspection, loan establishment fees and possibly furniture removal expenses. So, before you start property hunting, it is imperative that you work out your budget and know exactly what you can afford to spend on a home. Your local broker can organise home loan pre-approval for you, which will give you a good idea of how much you can spend on a property.
STEP 5: Buy within your budget
If your borrowing capacity is $600,000, don’t spend $700,000 on a property. When buying property, the key is to always buy within your budget. Don’t get caught up in the excitement of buying a home and ultimately and spend beyond your means – this will lead to additional financial pressures down the line.
Your local mortgage broker will not only help you establish a budget, but help you find a lender that best suits your unique circumstances.