Investing in real estate is often one of the most important and expensive purchases many people will make in their lives.
When searching for a property, it is wise to have set clear criteria of what you are looking for. It is important that you are aware of:
There are a number of ways to search for potential properties. These include:
Once you have found the property that suits your criteria, it is important that you do some homework. Some things to remember when preparing to buy are:
You will also need to take into account a number of other costs associated with buying a property for which the buyer is liable. These may include the following:
When making an offer to purchase a property, it is important to be aware of the following:
Your agent will guide you through this process. Before the home is legally yours there are a few steps that take place:
Financial preparation is one of the most important stages of buying real estate in Australia. Aside from using a home loan calculator to figure out how much you can afford to borrow, there are various other costs you will also need to factor in. So once you’ve accounted for your mortgage each month, what other expenses do you need to consider?
Gas and electricity costs are something else you need to include in your calculations. ABS data shows that back in 2012, Australian households spent an average of $99 per week on energy, with $39 of this dedicated to electricity and gas. The rest refers to fuel for vehicles.
Prices have generally been rising over recent years, and unless you’ve opted to generate your own power through solar panels or suchlike, chances are your bills are going to increase.
If you’ve bought real estate in Australia that’s part of a strata scheme, it’s likely you will be faced with some sort of fee. This is generally used for the upkeep of public areas and should be outlined in your contract.
This is something you need to look into closely before viewing any strata homes for sale. Otherwise, you could find your monthly expenses are higher than you expected.
LENDERS’ MORTGAGE INSURANCE
The main reason you’re advised to save more than 20 percent of a property’s value as a deposit is, otherwise you’ll be faced with lenders’ mortgage insurance. This is designed to protect your lender in the event you fall behind with repayments on your loan.
The amount you pay will depend on how much the property is valued at. Speak to your lender if you’re unsure whether this fee will apply to your particular purchase.