As the housing market bounces back from the challenges of 2020, many first homeowners are taking the plunge into homeownership. Buying a property can be a complex business and while there can be challenges along the way, staying well-informed and being organised will ensure you a smooth buying process. Here are 6 steps to make sure when you see the property you want, you’re ready to purchase and less likely to miss out!
First up, you’ll need a deposit. A 10% deposit is typically required to secure a property, so if you have this ready then you will be good to go. However, if you have yet to reach the 10% deposit goal, you can use this time to continue saving up your funds.
And if you’re thinking of putting it on credit don’t! This could reduce your chances of getting approved for a mortgage. Ideally, you will have paid off all your credit card debt, to make your credit history much more favourable to lenders when the time comes to get a loan.
Speed up your savings by having a separate account from your other purchases to help you spend less and keep your finances organised.
When buying a property, you will need certain documents to hand in as part of your loan application, so having all of these readily available will mean you are ready to go without any delays. Get copies of your passport and driver's licence as proof of identity as well as a list of all your assets such as bank statements and your most recent payslips, which you can show your Mortgage Broker.
The next thing you should consider doing is to speak to a reputable Mortgage Broker and find out exactly how much a lender would loan you to buy a property. This will give you a rough estimate on your maximum budget and what properties are in your price range and how much more you might need to save. It’s advisable that you buy comfortably within your budget to avoid mortgage stress.
As well as speaking to a Mortgage Broker, you should also do your own research and work out exactly what it is you want to buy and where. Do you want to buy a property that is old and do some DIY, or would you rather buy something that is brand new such as an off the plan apartment, townhouse or house and land package and not worry about any of the hassles of maintenance or repairs?
Once you know the type of property you want to buy, know your budget and what you can afford. This will dictate where it is you buy. If you can’t afford to buy where you want to live, perhaps you can consider rent-vesting. Either way, ideally, you should be buying a property that is situated in a good location, with good infrastructure in place (or planned). Livability factors like how close it is to transport and amenities like schools, shopping centres and greenspaces will all impact the future value of your property.
It is essential to be aware of any incentives or concessions that you could be eligible for to help lower your expenditure. The First Home Owners Grant aims to provide funding to homebuyers across Australia with a specific amount depending on which area you live in. The First Home Loan Deposit Scheme is also available to assist in securing your home by lowering the deposit to as little as 5%.
Within Victoria, properties valued up to $600 000 are not required to pay any stamp duty while a reduced stamp duty rate is also applicable for properties that are valued up to $1 million. On the other hand, the NSW is currently looking to replace stamp duty for home buyers with an annual property tax instead.
In addition to your own independent research, it is also worth speaking to a Property Consultant. A Property Consultant at iBuyNew will be able to show you the latest statistics and data on a suburb and the property market, ensuring that you have the most up to date and accurate information to make your decision to buy.
Our Property Consultants can also understand your budget and requirements and find a new or off the plan property tailored to your needs. At iBuyNew we have a broad range of new and off the plan properties for sale across Australia. Working with a Property Consultant can give you first access to the best stock. It also takes the stress out of buying a property and provides a far more seamless experience.
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To ensure you are buyer ready for 2021, get in touch with the friendly iBuyNew team today who will be happy to assist you with your property search and find a property to suit you. Call us today on 1300 123 463 to book your one-on-one meeting now.