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Are you thinking of buying a house? We know it’s not an easy decision. There is a lot of money involved and there are a lot of things that you need to consider. To make sure everything goes smoothly and the best outcome possible is achieved, you will be required to make informed decisions that are significant and life-changing. Here are some things that you should consider when buying a house:
1. Budget
Set a budget and stick to it. It is very easy to go over your limit during negotiation.
- Think realistically about what YOU can afford. Home loan payments are a large commitment and can impact you more than rent payments.
- When calculating your potential home loan, don’t just apply for the maximum amount that you can receive. Take your time to research about repayment fees and compare different loans and banks to find the best deal to suit your situation.
- Keep the deposit in mind. You will need to pay 10% of the initial house price. Make sure to include this in your budget when considering a particular property.
2. Silent Costs
Silent costs add up – remember to include this in your budget. Research them before making the big move. Silent costs differ between residential areas and councils. When considering purchasing a property, make sure you are well-versed in the area you are looking to buy in. If you aren’t sure on how to integrate this into your budget, conveyancers and lending professionals can help with this process. Examples of silent costs include:
- Council rates
- Stamp duty
- Lenders Mortgage Insurance
- Additional insurances
- Loan fees
- Conveyancing fees
- Building and pest inspections
3. Do Your Research
We are all looking for something specific in a house with different preferences. What you like may not be the same as someone else. For example, potential buyers may prefer location over aesthetics – others wish to have a pool in their backyard for the summer weather. Take your time to research about the prices of different residential areas. Did you want to buy land or buy a prebuilt home? If you are considering buying land, research about the building permits in the particular residential area.
It is also important to know the area you are moving into. Do some research about the following:
- Areas you prefer
- The particular council
- The neighbourhood and ambiance – is the area known to be safe and secure?
- Parks and recreational areas
- Potential current and future council development plans
Learn about the market in your desired residential area. Chat with local agents to know how the market is doing and the trends that are surfacing. It is also very important to know about the selling history of surrounding properties in the residential area to compare and contrast value over time.
Look for things that could boost your property’s value, such as:
- Schools in the area (good schools with high demand typically increase property value)
- Future building plans in the area
- Transport accessibility
- Access to amenities
- Touristic sites/high visited or valued sites in the area
Aspects that could decrease a property’s value:
- Building plans that can affect your house negatively
- Quality and infrastructure of the house
- Poor house maintenance
- Poor safety and security
4. Renovation
You can buy either a new or an old house. Old houses tend to be cheaper but will come with the wear and tear that inevitably comes with time. If the house isn’t in great condition, you might need to undertake renovations, which should be included in your budget.
This will also influence when you can move into your new home. If you aren’t willing to do any renovations at least in the first few years, you need to keep the house’s condition in mind. A Section 32 (link to article made for red door about this) is a legally required document for vendors to provide to buyers before you sign the contract. This will give you useful information about the house to consider prior to making the final decision.
If you already own a house and are thinking of changing houses, renovating may potentially be a great cheaper option instead of buying. There are still plenty of costs and legal requirements that are required to be met but they are much less and easier to go through. Additionally, make sure you check out all the building and renovation restrictions in your residential area.
5. Negotiating Power
It is no surprise that purchasing a home is a very big financial decision. It is always worth it to negotiate – sometimes, luck may be on your side. Don’t rush into a decision. Keep in mind that real estate agents have the seller’s best interests in mind. Here are some points to consider:
- You can always walk away.
- Supply and demand. If the house is not high in demand and the real estate agent is being pushy – a better deal could be agreed on. It might also mean that other houses could have better deals.
- Go with the market, not the asking price. If similar houses are selling cheaper than the asking price, go with that.
6. Get A Conveyancer
If this is all giving you a headache, and you are also wanting to ensure that the house buying process goes as smoothly as possible – Melbourne conveyancers are professionals that can provide a complimentary review of contracts for purchase or assist with the contract for sale.
At Red Door Conveyancing we offer a robust array of services catered to any situation. We highly value your success as well as our own. Get in contact with us today for a consultation – let us help you make life-changing decisions with ease.
