Buying a property is a big decision. It is probably one of the biggest purchases in your life, and it is one of the most complex too. You should never rush or be pressured into making a decision. Don’t let your heart rule your head when it comes to a nice property you like. Do you know what to consider when purchasing a residential property? The biggest mistake for property purchase is not doing your homework; with that in mind, here are several things you need to consider before committing to the right property.
Make sure your finance is in place
First of all, you should make sure your finance is in place. Carefully assess your financial situation, make a budget and determine how much you can really afford and repay by using the borrowing capacity calculator and repayment calculator or talk to a mortgage broker first to save the hassle in the later stage.
Don’t forget, there are a few hidden costs apart from what you are paying for the property price, you should prepare funds to cover the extra costs, such as conveyancing and legal fees, building and pest inspection, mortgage registration fee.
Know what you want exactly
Secondly, you should know what you want exactly. Consider where you really want to live, what is your preferred areas and suburbs. Think about the essential features you would like to have, whether the property is close to important facilities, for example, close to shops and parks, public transportation available, and accessible. Furthermore, does the home have the right number of rooms or bathrooms to suit your needs?
Consider your eligibility for any concessions
There are some concessions available for the first home buyer, you should consider if you are eligible to apply, such as the first homeowner grant, which is a one-off payment to qualified first homeowners buying or building a new home. Stamp duty concession is also worth checking with experienced professionals before making any decision.
Get a building report, strata report and pest inspection
You may wonder why you need to spend extra money on those reports. Property reports can help to reassure and identify potential problems that may arise in the future, facilitating you to make a more informed decision regarding a purchase.
The reason for a strata report is that many things are not apparent from a visible inspection of the building. A strata report can highlight any ongoing issues with maintenance or problems.
Building and pest inspections can safeguard property buyers from those fault-ridden properties by revealing the hidden or latent defects in the property. Even if no major issues are identified, you can further negotiate regarding the purchasing price with some minor problems identified.
It’s important to know what to consider when purchasing a residential property. Don’t be afraid to turn down the deal if it does not seem 100% right to you. There will always be other properties available in the market. You must tick all the boxes before buying a house, and remember great things do take time.