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Top Things Savvy First-Time Home Buyers Do Prior To Purchasing Property

Purchasing property is likely to be one of the largest financial transactions you will ever make. Because of this, it's something you shouldn't take lightly. Below, you will find some of the top things that you should know before going ahead and purchasing a property.

 

1. Figure Out What You Can Afford

One of the biggest mistakes a lot of people make is not accurately calculating what they can afford. You want to figure out how much you can afford before even beginning your search. It doesn't mean taking out the maximum you can borrow. It simply means knowing how much you can comfortably pay monthly.

You need to consider that home loan repayments can impact your monthly budget much more than a rental would. Especially when you factor in the expected costs of owning and maintaining a home.

Thus, you want to ensure that you include home loan repayments in your budgeting to ensure you can work with them. Home loan specialist Muzi Dan from a Sydney Business Consulting firm says “You can always use our calculator to get an accurate estimate. From there, you want to try to live on the budget that you came up with for at least three months. That way, you can figure out how viable it is. Always put away some money each month for unexpected or expected maintenance costs.”

This will ensure that you can avoid taking on too much of a mortgage. By overestimating, you can keep yourself from tackling too much which could force you to live with stress.

Keep in mind, whenever you purchase property, you need to factor in the extraneous upfront costs too. These include but aren't limited to stamp duty and more. Therefore, you need to factor in everything when calculating your budget. 

Once you're done with this, you can send in your application for pre-approval. That way, you can be a buyer with the intent to purchase rather than someone that is wishful.

 

2. Research The Area Thoroughly

Property expert Peter Langenberg says, “Whenever you are buying property, the location matters. You can never be too informed about the area you are buying property in. You want to learn the in's and out's of a property that you are buying.” This is especially true when it comes to the area surrounding it. 

You want to do a thorough investigation of the other property prices within the area and figure out some of the trends too. You can find a lot of good online resources to help you do this including CoreLogic, Domain, and Realestate.com.au.

Continue your research by speaking with local real estate professionals and even mortgage brokers to ensure that you are well tuned into what's going on in the area. This will give you as much information about the local area and the local marketplace to know whether or not you are getting a good deal.

 

3. Research The Property Itself

One of the things that you need to do when you find a property that you have an interest in would be to research the property itself. You want to do a good amount of research on the property that you are considering because you will be putting a lot of money into it. You want to ensure that it doesn't have any unpleasant surprises that you will learn about later on. You should do things like inspect the walls, smell for potential mould sources, and more. 

Check out the appliances and even the toilets. Is everything working properly? Is everything functioning as it should? Are the toilets flushing? These are some of the things you should be narrowing down on to ensure that you are making an informed buying decision. Always ask questions if you have them. Don't be afraid of asking as many questions as you need.

 

4. Work With Knowledgeable Professionals

Whenever you are making such a big purchase, you should prioritise working with educated and experienced professionals within the industry. After all, you want to ensure that you make the right decision. Melbourne Architect Sally Holbrook says, “Having an experienced professional working for you will ensure that your best interests are looked after.” You want to hire someone with vast experience in your local marketplace. Hiring a licensed home inspector is one of the best decisions you can make. That way, you find someone that can walk you through the home and you will be able to figure out whether or not there are major hidden issues that could negatively impact your purchasing decision. 

Always try to work with a mortgage broker to ensure that you have all of your finances in order. Speak with a financial adviser when you are trying to figure out if the home is the right purchasing decision for your family. To avoid any sort of conflict, you will want to ensure that the lawyer representing you isn't also representing the seller.

 

5. Use Your Head

While you may lead with your heart for a lot of things in life, buying a property isn't one of them. You want to think clearly with your head. Be willing to walk away if the deal isn't right for you. There will always be other properties that you can consider. Just because you fall in love with one doesn't mean you should ignore red flags.

 

6. Be Willing To Negotiate

One of the things a lot of buyers fail to do is to negotiate. The fact is, you need to put in work with your negotiating. Try to negotiate as much as possible. While the money you cut off the total sale price might not seem like a lot, it can add up when all is said and done. The truth is, a lot of sellers will be willing and able to strike a deal. You simply have to ask for one. 

 

7. Don't Feel Pressured

One of the things that you need to keep in mind throughout the entire process is that you don't need to make a deal. A lot of real estate agents are professional salespeople. Because of this, they are typically looking to strike a deal quickly. They want to try to get you to put in an offer as soon as possible to ensure they make a quick commission. Don't feel pressured by a real estate agent. Go through the various steps discussed in this article and you will know when it's time to submit an offer.

 

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