Buying a property can be just as overwhelming as it is exciting. Understanding some basics of what is involved will help make the process stress free.
General Tips when Buying a Property
Know the value of the property – It is important to know the value of the property, whether you are bidding at an auction or making an offer. Research recent sales in the area and attend auctions to see what similar properties have sold for.
Know your borrowing capacity – Before you begin looking at properties, it is always best to talk with your banker or a broker first. Once you understand your borrowing capacity, you can narrow down your search to properties within your price range. This will enable you to set yourself a limit at auction– and to stick to it!
Consider additional costs – It is important to remember that when buying a property, there are costs other than the purchase price. Don’t forget to factor in stamp duty, legal fees, mortgage fees/lender’s mortgage insurance and moving costs. These additional costs should be factored into your budget.
Know the concessions available – There are a number of concessions available for first home buyers, pensioners or for buyers with disabilities. Have a look at the ACT Revenue Office website to see the current concessions available and discuss your options with your solicitor/conveyancer.
Avoid borrowing to your full capacity – Keep in mind that mortgage repayments will not be your only ongoing costs once you move into your new home. Factor in outgoings such as rates and utilities and your weekly “Smashed Avo” (you can have it all!) when budgeting.
Understanding the process of buying property and being prepared will make the experience much less daunting and a whole lot more exciting!
For more information contact the Property Team: