What You Should Know When Buying A Home
Now that you’ve saved enough money for a down payment on a new home, you’re one step closer to becoming an official homeowner. But before you make a final decision, you need to consider some aspects that include your family’s needs and lifestyle. Here are some factors to consider when you buy a new home.
Financial Evaluation
Before you decide to take a home loan, make sure that you have saved up enough for a deposit. You can generally only get a home loan if you are able to provide a minimum of 5% of the purchase price of the home as a deposit – so if you haven’t saved this, you’re unlikely to get a home loan. If you are able to pay a 10% deposit, then you are perhaps eligible for a loan at a lower rate of interest. And if you are able to put down 20% as a deposit, then you can avoid paying Lender’s Mortgage Insurance. Your credit score will also determine your financial situation. Lenders look for credit applications made previously, credit card expenses, defaulted payments and other infringements. Be sure to check your credit report on the ASIC website before approaching a lender for a home loan.
Choose Your Location Wisely
The location of your new home is an all-important factor that determines how much you end up paying. The price of houses will vary in different locations, depending on a multitude of factors – access to schools, public transport and major roads. Houses that are located in well-connected areas will naturally cost more than suburbs that are further away from the business district. While your budget is the determining factor when it comes to location, keep these other considerations in mind too. After answering these questions, you’ll be in a better position to determine a suitable location.
Is the property close to major roads and highways?
How long is it to the nearest train or bus station?
Are there good schools and educational institutes in the area?
Does the neighbourhood have a good daycare offering?
Are there enough shops, eateries and entertainment hubs?
Are there any local clubs or social events?
What are the neighbourhood communities like?
Condition of Real Estate in the Area
Whether you’re moving from one suburb to another or interstate, you must do adequate research before making a real estate investment. If you’re interested in a particular suburb, it wouldn’t hurt to walk around the neighbourhood to get a feel of the demographics. Look at the condition of properties in the area — are they well maintained or shabby? Does the neighbourhood have many freestanding homes or apartment complexes? The condition of real estate in the area will take you one step closer to your decision, based on your personal circumstances.
Current and Future Plans
Consider why you’re buying the property. Is this a forever home or temporary buy? If you’re planning on making it a forever home, you’ll need to think of several factors:
How many kids do you currently have and how many do you plan on having?
Does the house have enough bedrooms for everyone in the family?
Will your aged parents come to live with you in time?
How often do you have guests over?
Do you work from home and need a separate study?
Can you meet potential clients in the property?
How long does it take to get to work?
Consider these factors when making the decision to buy a home and choose a home that resonates with the needs and plans of your entire family. Register your buying criteria today if you’d like us to help you find your dream home.