Buying a Property? 4 Things You Need to Know.

Buying a property is usually one of the most significant investments you make in your lifetime and can be a very daunting task. Purchasing a property is a substantial financial commitment, so it makes sense to settle with a home of your liking that is well-positioned to be a solid investment over the years.

1. Be Prepared: Getting a home loan is not always easy or fast

It is a misconception that getting a home loan from a bank or other lender is easy and quick. In reality, the lender may have lengthy assessment criteria you need to meet, and there can be long processing times depending on their procedures. When they review your eligibility for a loan, the lender will typically consider your credit points, job stability, and loan history.

Remember that you can chat to our team about what you need to put forward the best application you can (with all the information required!).

2. Understand all the fees and charges to avoid going over your budget

Deciding on a budget with your financial capacity in mind is an absolute must. Before looking at properties, you can chat with a mortgage broker and understand all costs involved in purchasing a property and what you may be able to borrow.

Many borrowers will seek a pre-approval to confidently put in an offer when they find the property they want to purchase. It is also an opportunity to determine the full schedule of fees and charges you may be liable for and make sure they are accounted for in your budget.

Trying to purchase a property above your budget can be disappointing if you are not approved and stressful to make payments on if you are.

3. Good legal advice is an investment

Buying a property is a significant financial commitment, and your contract covers all the legal implications of the transaction. You should always seek legal help from a professional who can verify the correctness of the paperwork, clarify all the clauses in the contract and look after your interests.

Signing paperwork without proper legal advice or based on the seller’s word can prove to be very costly in the future if you come into any legal trouble.

4. Choosing a property that suits your goals

If you are considering a new home or an investment property, you might have different goals and strategies, which will shape the critical aspects of the property you are looking for.

Being clear on the outcomes you desire will help you narrow down your search to find the property that suits you. Whether looking for a home or an investment, buying a property is a significant financial commitment, so it makes sense to look for a property that suits your needs and is well-positioned to be a solid investment over the years.

If you are looking to purchase a property, some of the critical items to consider are:

• Location: A location with proper access to transport and other facilities will be convenient whilst you or your tenants live there and will be desirable for future purchasers when it is time to sell. You may have other considerations, such as proximity to work or family.

• Local Amenities: Amenities that cater for a range of lifestyles will suit you as your lifestyle changes or be attractive to a broader range of tenants and future purchasers. Amenities may include gyms, restaurants, childcare and shopping.

• Lifestyle Amenities: Amenities included in the property, perhaps a pool, gym or other onsite facilities such as a caretaker, may suit your lifestyle. An onsite caretaker may offer you confidence that your investment is well looked after if you are looking to invest.

• Cash flow: If you are considering purchasing an investment property, you may be more inclined to prioritise the financial investment, such as growth potential over the proximity to work or relatives.

Like any investment, it pays to do your research when purchasing a property, even if it is your future home. We can help you when you’re ready to start looking at rates, loan options and putting together a budget that suits your financial goals.

Disclaimer:

Terms are subject to approved persons only. This information is true and correct as of 25/12/2021. All of the content above is general in nature and may not suit your personal needs, situation objective & goals.