With the Spring selling season just around the corner, now is the perfect time to prepare yourself if you’re planning to jump onto the property market this Spring. Here are my tips to help all home buyers find their dream home as quickly as possible:
- Make a list of ‘Must Have’, and ‘Must Not Have’s: It’s important you are clear on what you will and will not sacrifice. For example, location, number of bedrooms, car parking, public transport, facilities, heating and cooling, bathrooms, outdoor space. Eliminate quickly any property which does not tick these boxes.
- Budget: know your absolute maximum purchase price, and monthly repayment, and stick to it. Also factor into your repayment a rate rise of 2%.
- Pre Approval: Make sure you speak to us and have a Pre Approval in place before bidding at auction.
- Research: Visit your potential new neighbourhood at different times of the day, talk to neighbours, and obtain a property report from us to help ascertain a reasonable price guide. The more informed you are, the better your decision making.
- Be aware of Bank restrictions: ensure you are aware of all restrictions your lender may impose, such as small apartments under 50sqm; restrictive titles such as a Company Title; High Density or Inner City locations; maximum borrowing % ie 95% inclusive of LMI Mortgage Insurance.
- Build relationships with local real estate agents in the hope they will call you when they have new listings, before they are advertised.
- Contract of Sale & Building Inspection: Ensure you have the Contract of Sale and Section 32 reviewed before placing a bid or bidding at auction. Also ensure you have a Building inspection prior to bidding at auction if required.
- Auctions: consider asking a friend or family member with experience to make the bids for you. Don't place a bid until the property has reached its reserve. Auctioneers like people to bid early to create tension in the auction process, but the real action only starts once the reserve has been reached.
- The days of a bargain are gone! Don’t expect to buy something below market value. If you want to make an offer on a private sale or before auction, make it a good offer with terms that are favourable for the vendor (i.e. settlement dates and finance clauses)
- Be ready to act quickly if your dream home comes along.
To discuss this article or any home loan questions in detail, please call Monica van Riet at Mortgage Choice South Melbourne on 03 9681 8182 or 0401 677 314.