Owning your own home remains one of the great Australian dreams. Whether you are a first time home buyer or a veteran of several homes, the thrill of finding the perfect home and making that successful bid or offer never wanes.
While owning a home means different things to different people, there are some common reasons for investing in a mortgage:
Building up equity in a home by making regular mortgage payments is one of the best ways for many people to save a large amount of money over time;
Unlike rent, the money you spend each month to pay the mortgage goes directly towards purchasing your own valuable asset;
Home ownership is usually a safe way of investing money over a long period, and, depending on location and other factors, the value of the asset is likely to appreciate over time;
When you own your own home, you no longer face problems associated with renting, no visits from the landlord, no need to renew a lease every 12 months or so, no need to ask permission when you want to make improvements;
Many people anticipate that owning their own home will make things easier when they retire.
Buying a home is not only one of the largest purchases you’re likely to make, it can also be one of the best long-term investments, so it’s important you get it right. This means doing your homework and making sure that the property you are buying is the right one in terms of price, location, value, size and lifestyle.
The Tips
The fear of being rejected for a home loan is a big concern for many first time home buyers. You shouldn’t be looking without finance approval in writing so we strongly suggest you get pre-approved for a loan before looking at prospective properties. This will not only help you feel more confident, it will also give you an advantage when there are multiple interested parties for a specific home. The fact that your loan has already been approved is of great value to you when negotiating, as any offers you make you know you can back up with the funds required promptly.Purchase at an affordable level: carefully consider your income level and living expenses. Take into account future considerations such as; getting married, having children, additions etc. Your dream home is certainly worth a sacrifice but don�t mortgage your entire future for it. Budget for interest rates to be at a two percent higher level than they are now and see if you can still afford the repayments.
Check out all your costs and expenses before you sign: taxes, insurance, maintenance, council and strata fees etc, if applicable. Make sure all the utilities are on (gas, electricity, and water) so you can inspect everything in working order.
Do a pre-settlement inspection: visit the property on the day of settlement or after all the furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon in the contract. Many times, things are unintentionally overlooked or damaged by a removalist company that could have been spotted in a final walk-through and resolved prior to settlement.
If it’s not in writing, it doesn’t exist: all promises and discussions are to be in writing. Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. Having an ongoing log (in writing) of all discussions can be a valuable and worthwhile exercise.
Following these tips and with the help of the staff at Raine & Horne Cairns Beaches, you’ll make a good purchasing decision that you’ll be proud of for years to come.
produced by