Home Buyer’s Checklist
Buying a property is a significant and ongoing financial commitment. Be sure to prepare yourself and keep a level head. Here are some tips on what to consider:
1. Set your budget
You may know how much you can afford in terms of repayments but don’t forget there are other costs. These can include:
- loan application fees
- building inspection fees
- mortgage insurance
- stamp duty
- solicitor fees and more.
Another important consideration is that lenders will calculate your ability to repay up to 2% above the current rate in case of an interest rate rise. You need to be aware of this "buffer" as it could affect your ability to secure finance.
2. Make a list of all the essential features you require in your property.
This will help you avoid getting carried away and buying a property that looks great but doesn’t meet your needs. It’s also a good idea to make a wish list of all the desired but non-essential features you would like so this can be factored into your decision making.
3. Secure your finance.
Talk to your bank or employ the services of an intermediary. Ask lots of questions so you feel well informed. You’ll need to figure out the type of loan that best suits your needs. For instance, will you lock in a fixed interest loan or a variable one? If you are a first home owner, be sure to investigate the current government grants that may be available to you.
4. Start Looking
It’s always a good idea to spend some time researching the area where you intend to buy. What are the local amenities? How convenient is public transport? How much have recent properties in that area sold for? Attending several auctions is also a good way to see what’s happening in the market place and possibly prepare you for bidding at one yourself.
5. Building inspection is a must.
When you find the right property, make the effort to get a building inspection done. This involves a thorough examination of all accessible areas of the house or apartment to determine its overall condition and pick up any defects.
Each building inspection should be undertaken by an experienced professional to guarantee you have a detailed knowledge of the structural condition of the property. A comprehensive building report should also be provided after each inspection. The inspection and report will set you back a few hundred dollars but could be money well spent - and could save you thousands in the long run.