July 11, 2016
Take the next step in your property journey
At some stage you may start thinking about stepping up to your next property. Here are some tips to maximise your buying power.
One of the best aspects of buying your next property is that you don’t have to work as hard to build a decent deposit. You may have considerable equity in the property you have and this can go a long way towards paying for your next place or investment property.
In addition, you’ll have an established borrowing record, something that can be a real asset when it comes to securing finance to fund your next home.
Minimise buying costs
That’s not to say buying your next property is all beer and skittles. It can also come with some hefty costs – in particular stamp duty.
Government figures show the average Australian moves about every five years*. That can mean paying a lot of stamp duty over the course of your adult life. I can talk you through the best ways to plan for this extra expense and the best way to mitigate the costs associated with buying property.
Stalk the market for good buys
Expand your search: Another way to get more bang for your buck is by stalking up-and-coming areas for a bargain. Choose your dream location, and if you can’t afford local prices, think about buying on its outskirts or in neighbouring suburbs. It’s a fair bet that higher prices will ripple outwards over time, pushing up values in adjoining suburbs.
Look beyond daggy décor: Upgrading into a bigger home or purchasing an investment property can also be more affordable if you’re prepared to bring a dated home back to life. We’re not talking a major top-to-toe renovation - more of a freshen up.
Properties with daggy décor may be turning buyers away, but can represent good value. A kitchen or bathroom revamp, a garden tidy up and a decent paint job can be easy ways to grow equity once you’ve taken ownership of the place.
An opportunity to review your home loan
The sun may be shining on upgraders right now as the property market remains healthy and interest rates are at historic lows. Nonetheless, selecting the right home loan is critical and expanding your property plans offers an ideal opportunity to review your home loan.
Features like an offset account are often especially useful for second and subsequent home owners, who may have a little more cash to hold in the linked account than, say, a first home buyer. An offset can play a vital role in helping you pay off the loan sooner and save on interest charges – yet still with your money available at call.
Importantly, we should talk about how your current loan compares to what else is available on the market. Upgrading can provide opportunities to refinance your loan, so that your new home and lifestyle is also accompanied by the fresh – and potentially money-saving – start of a brand new home loan.
If you’re considering the next step in the property ladder, call Renee on 07 5562 0748 and let’s talk.