July 26, 2017
There might be a bit of an oxymoron in the statement: Buy property with confidence. When you’re about to shell out a few hundred thousand dollars, whether it’s your money or borrowed money, you have every right to be a bit nervous. Overconfidence is a risky way to buy and lack of confidence will probably see you never buying.
Unless you’re a millionaire the money that you have acquired up to this point has been hard-earned, saved, spent and invested…maybe. So, when you step onto that diving board of either jumping in to buy your own home or to invest in a rental property, in the back of your mind is that little voice saying: Am I doing the right thing?
There are three answers to that question – Yes! No! And Maybe!
Yes, I can afford it and it makes sense. No, I can’t afford it. Maybe I need to do a bit more research to give me the confidence to buy. There is another way. Go and meet with a mortgage broker. Not a bank.
As an expert mortgage broker, sharing of my knowledge and experience is a big factor in not only gaining trust but also providing my clients with accurate information that will help them move from ‘maybe’ to ‘yes’. Or from ‘yes’ to ‘no’. Every individual has a separate set of parameters. Amount of deposit, other regular monthly commitments and bills, children or not, well paid jobs, or not. Everybody is different and requires different information that applies to them.
Here are five tips to help your decision making about buying your first home or an investment property. However, be aware that some rules for your own home differ to those for buying an investment property.
As hard as it is to save these days, the more substantial the deposit you have the better the loan conditions. Additional costs like mortgage insurance don’t enter the equation and a wider choice of lenders may be able to offer a better deal than being restricted to a couple of lending institutions.
2. Extra Costs
As well as the deposit, you need money for all the incidentals that are involved with the purchase of property. Connection of utilities, inspections, home and contents insurance, valuations, stamp duty, removalists, furniture and appliance purchases. You would be surprised at just how much these can add up too. In the case of a rental property there are other costs such as landlord’s insurance.
It’s very true about location. However, not everybody has the luxury of buying a beach front property 😊. So, do your homework. Be a bit of a stickybeak and check out the surrounding area of the property. Things like schools, amenities, shops, transport and the neighbourhood in general are all handy pieces of information you need to help you decide if the property is the one for you. An important consideration is the resale factor. If you find the area desirable, then so will future buyers of your home if you want to sell.
4. Condition of the Property
If you’re a DIY person, then you won’t be overly worried about the condition of the place if there seems to be a lot of things that need repair or renovating. But if this is your first home and you scraped together the deposit and you know it’s going to be economically tight for the first couple of years, the last thing you need are major repair bills. Water heaters and stoves come readily to mind. If the house has a pool then that can be a huge drain on resources if something goes wrong. Plumbing and electrical all need to be in the best condition.
5. Your Mortgage Broker
As an accredited and licensed mortgage broker, I can answer all your questions about finance matters. I can provide you with more than enough information about lenders and I have the tools to be able to determine the best deal for you.
Related Blogs: Preparation and Planning for a Home Loan
Whether you are looking to buy your first home, move home, refinance, or invest in property, talk to someone that works for you. Someone with knowledge and expertise, and access to a large range of lenders, who can provide independent advice. Feel free to call us on 02 9653 9333, email: firstname.lastname@example.org or book an appointment online here