Buying a house for the first time generally requires you to become a master of research. Not only are you researching neighbourhoods and house prices, but you’re also researching your budget, specific houses, and professionals who can help. You can spend a great deal of time on search engines!
However, knowing you’ll need to research doesn’t mean you know what requires the most attention. Here are a few of the many things you’ll need to begin looking at when buying a house:
House Prices
Type ‘house price predictions Australia’ into a search engine, and you’ll see many experts saying that house prices in Australia are expected to rise. That can be good news for any home buyer wanting to build equity and set themselves up for the future.
When the time comes to start house hunting in earnest, look at house prices in your preferred area. Pay attention to which areas have the highest average asking price and which have the potential to help you build equity quickly. The more knowledgeable you are about house prices, the easier it might be for you to put an offer on a property with complete confidence that it’s worth what you’re willing to pay.
What You Can Afford
There’s nothing wrong with imagining your dream home and all the features you want it to have. However, it’s essential that your dreams and financial situation align. Research your finances early in the house-buying process to know how much money you have and whether you can afford to live in your dream location.
Your bank or mortgage broker can help with this process. Once they learn about your income, expenses, and deposit, they can provide pre-approval up to a set figure. You’ll then know the limit of what you can spend and your weekly mortgage payments.
Experts to Help
House hunting is a personal experience, but you don’t have to do it alone. Whether you’re buying a house by yourself or with someone else, you can research experts to help. After all, there can be many steps in the average house transaction. You will need your bank or a mortgage broker to facilitate lending and help you choose a loan type. You’ll also likely need a real estate agent to help you find houses to buy.
If you’re self-employed or already have an accountant, they can help organise your financial records. You’ll also need a lawyer to review your sale and purchase agreement and facilitate the purchase. Even tradespeople and inspectors can be worth your time. They can inspect properties to look for major defects that may cost you a lot of money in the future.
The Most Desirable Loan Types and Interest Rates
Your bank or mortgage broker will present most available loan types and interest rates you’re eligible for. Once you know what you’re entitled to, research the advantages and drawbacks of each.
For example, you have the freedom and flexibility to make extra payments on floating home loans, but the interest rates can sometimes be higher than fixed rates. You can enjoy certainty with fixed rates but can’t make additional payments to reduce your interest payments.
There’s more to house-buying than finding your dream home. A great deal of research can be required to get the purchase over the line. The more research you perform, the more confidence you might have as you embark on this new and exciting home-buying journey.