Buying a property is a big thing and it is something you should approach with careful consideration and thoughts. And being a big deal, it is something that requires time, research and effort, besides money, of course. First-time buyers often don’t know where to begin when they decide to buy a property. And on top of all, even though some things are universal, others are quite specific and depend on the country. If you live in Australia and want to buy a property in Sydney, keep reading. We’ve compiled a list of things that can help you prepare for buying a house in Emerald City.
So, if you are considering buying a house in Sydney, you should start by assessing your current situation before moving on to the next steps. When you have assessed it, you can figure out how much money you can save up for a deposit you need to make. Then, you should check how much money you can borrow and pay off any debts, if possible. To make the right choice, you should do thorough market research. Along the way, you should be thinking about the ideal property for you. And the last step includes preparing for purchase and finalizing it.
1. Start with assessing your current situation
There are a few things that affect how much money you can borrow. Some of these things include your job security as well as your lifestyle habits. That’s why the best thing you can do is start with assessing your current situation, having in mind these factors. Let’s start with job security, which is the key element when it comes to home loan applications. Usually, you need to have 12 months working on your current job, which proves you can make your mortgage payments. The higher the job security, the lower the risk for the lender. Also, whether you’re employed full-time, part-time or working casually is also crucial. Some people, such as low-income earners as well as those receiving certain benefits don’t qualify for a home loan so easy.
2. Save up for a deposit
When you have assessed your situation and calculated all the costs and rates, you can factor in saving up for a deposit. The height of the deposit needed usually varies, so it can be anywhere from 5 to 20% or more. You should estimate how much you can put aside each month as well as the time period you need to collect all the money. This is all in the pre-purchase phase.
It can be a slow process, and future homeowners sometimes need years to meet all the requirements in order to choose a perfect property. House price research is vital, as it helps you estimate how much money you need approximately, along with the deposit. In order to prepare well and choose a property you like, as well as to opt for the cost and most convenient payment method, you can hire a buyer’s agent in Sydney. Such agents have the necessary knowledge and expertise you need for a successful and optimal home purchase.
3. Clear all your debts
When it comes to getting a home loan, your borrowing power should be at its highest. In order to boost your borrowing power, you should check out the debts you already have, if any. Then, as buying a house is a longer process, you should try to clear them, before applying for a loan. Having some personal debts can make getting a loan harder, and they can even cause getting less money than expected. That’s why it’s good to start on time and pay off these debts, especially ones with high rates.
4. Check how much you can borrow
Getting a home loan is probably the biggest loan you’re ever going to get. It is a big financial decision. In this phase. You should consult your accountant and see how much you can afford to borrow. Getting professional advice gives you a more realistic picture, so we definitely recommend doing that. There are even some online calculators you can use to calculate an optimal loan for you. This is an essential step to take before even looking for properties. It helps you narrow down your search. You can then search homes accordingly.
5. Do thorough property research
There are more and less optimal times for buying a property. So, you should start with that. If you wish to buy a property, and you see that the prices for square meters are too high, it would perhaps be best to wait a little bit, if you’re not in a hurry. You can find some future predictions and behave accordingly. It doesn’t mean that you should quit the process. You can still prepare for this big step, as it takes time.
6. Think about the ideal property for you
Along the way, you can think about what type of property you’d like and where you’d like it to be located. First, you should decide whether you’d like to buy a house or an apartment. Then you should think about how many rooms would you like it to have and whether you’d like one or more levels. Moreover, you should also take location into consideration. Think about whether you’d like to live in the city or on the outskirts. Consider your job, schools for the kids and other things you need.
7. Prepare for purchase
The last step before actually buying a property is preparing for it. This means that you have your finances sorted out as well as property found. The first step in the preparation includes giving your property a thorough inspection with the help of professionals. Check for damages, mould, pests and whether all the fixtures and fittings are functional.
Buying a house is not something many people plan on doing several times. When getting a property, in most cases it is for a lifetime. That’s what you need to take slow and decide for the one you fall in love with. Remember that everything should be according to your wishes.
