Tips for Buyers
Here at Local Property 4 Sale, we've been working hard to establish ourselves as a real estate agency you can really trust. We make it a priority to ensure our clients are well-informed of the process in selling or buying a house so that you can have a full understanding of the benefits that come hand-in-hand with choosing our team. It is our goal to provide advice and guidance throughout the entire selling cycle from establishing the right price for you and negotiating terms with interested parties.
Tip #1: Decide where you want to live
The first step to purchasing a new property is doing some research to establish the perfect environment for you and your family. When selecting the suburb ensure to narrow it down to around 2-3. The reason we recommend this is because there are already many home buyers who are focusing on suburbs spread from the north to the south side and from the east to the west and depending on the contrast in infrastructure and price range of the area it can make it very confusing and difficult to make a decision.
Another thing to consider too once a decision on price range has been made, is how quickly you'd like to reach a public school, library or hospital and how far you'd be willing to travel to visit your family and friends.
Tip #2: Decide how much you want to spend
The last thing we want for our clients is to see them compromising a lifestyle and potentially selling their property too quickly due to the stress that comes alongside debt when their payments are too high and are consequently losing money. Step 2 is definitely one of the most important pieces of advice we can provide you with and that is to have a reliable and achievable payment plan with scheduled repayments and deadlines. This way you can make comfortable decisions with a clear head and ensure the process remains peaceful and structured.
Tip #3: Ensure you're getting the right price
When purchasing a new home, it is vitally important that you are confident in the price of the property you have chosen. At first the property may seem like its sitting on a bargain price but don't get too excited because there is always a chance you could be involved in thousands of dollars’ worth of home improvements and renovations that may have been initially overlooked. this could potentially end up costing a whole lot more than what the property was originally valued at, thus resulting in a long term loss of money.
Fortunately, for those first time buyers out there, Local Property 4 Sale provide a service that can help you in every aspect of purchasing your new home. If you aren't 100% confident in your knowledge of fair market prices in your chosen area it is worth investing in a Buyer’s Agent. The responsibilities of your buyer’s agent include sourcing a suitable property for your personal needs and budget, researching and comparing the prices of other properties for sale in that area to ensure you are getting a fair offer and negotiating on the client’s behalf for the BEST possible price. Also be sure to keep in mind the finance process, building & pest inspection and settlement time prior to committing to the sale.
Tip #4: Deposit
These days, there are no hard and fast rules associated with how much deposit a first-time buyer needs to make however a 20% deposit is seen as the most 'ideal' figure. Banks like to see that you have money regularly coming in and that you are saving for your home. The minimum deposit that can be placed on your purchase is usually around 5%, this covers the costs associated with the beginnings of purchasing a residential property including things like stamp duty and legal fees.
There are other options for first-time buyers such as guarantor loans which is a popular option. Many lenders will allow you to borrow up to 95% of your home's value however it is important to keep in mind that if you were to borrow say 80% or more of your home's value, you will be required to pay a Lenders Mortgage Insurance (LMI) which involves paying a one-off premium when you take out the loan so the bigger your deposit, the less you pay in LMI. It is recommended that you save for a 20% deposit at least because, say for example, you have only a 5% deposit, not only will you be paying an expensive LMI fee, you are then exposed to the risk of defaulting on home loan repayments if a you are no longer able to rely on your income due to either unemployment or medical complications.
Tip #5: Building and Pest Inspection
It is vitally important that before you sign a contract, you have a qualified building and pest inspector thoroughly audit the property. A processional building and pest inspector will be registered with the QBSA and should carry a gold card. The inspector will provide you with a report on the property to clearly indicate structural soundness and if there are any pests such a termites or maintenance issues that may threaten you financially.