6 things people forget when buying their first home

Posted on Monday, November 28, 2016 - 11:59

When it comes to buying a property, being caught off guard can determine a range of unexpected expenses. Purchasing a house is rather challenging; however, when you know what you’re doing, things go down your alley.

Matters such as loan pre-approval, lender’s mortgage insurance, stamp duty tax, conveyancing, contract of sale and professional inspection shouldn’t be undermined. Nonetheless, these get often forgotten.

Some quick stats about home buying

  • The numbers of first-time house buyers have dropped significantly. In July 2016, the statistics recorded 14.1 percent of Aussies.
  • New home sales grew by 2.7 percent in September 2016.
  • According to the Australian Bureau of Statistics, annually, residential property prices increase.

It goes without saying that purchasing your first home is a time of excitement. Nonetheless, it can also be disorienting. Hence, apart from our tips, we would advise you to ask for the assistance of a loan specialist. What other practices do you think first-time home buyers should embrace? Make sure you communicate your opinion in the comment section.

Not anymore, we present to you a checklist you should follow if you’re in the market for buying a house.

Loan pre-approval

Although this may seem rather obvious, many Aussies forget to obtain a loan pre-approval. This paper should state the amount you may borrow. This way, you can establish a realistic budget for your financial situation. Plus, it proves real estate agents you are a reliable buyer.

Lender’s mortgage insurance

In the case in which you want to borrow more than 80 percent of the total worth of the house, you’ll be required to pay Lender’s mortgage insurance. This provides the lender protection in the event in which the borrower fails to complete the payments. Ideally, you should save up for a larger deposit, to get around this necessity.

Stamp duty tax

Stamp duty is a tax assessed on the majority of property purchases made in Australia. The sum depends on the price of the property, the territory, and state in which you dwell. Nonetheless, note that it must be paid on settlement; hence, make sure you don’t overlook it. Read your complete guide of stamp duty via our article.

Contract of sale

When you finally get to purchase your dream home, because of the excitement, you may overlook analysing the contract of sale. Ideally, you should have it reviewed by a reliable, professional conveyancer before you proceed to make an offer. If you’re determined to purchase the property, we advise you to ask for a copy of the contract.

Professional inspection

Even though a house may look impeccable from the outside, you should always consider having a qualified professional inspect the property before sealing the deal. Hidden problems such as structural damage, rising damp, and pests are immediately noticed by a professional. This is a practice that may save you considerable amounts of money, in the long run.

Conveyancing

Conveyancing is known as the legal process that passes on the ownership rights from the seller to the buyer. This is a complex and lengthy process; hence, it would be best to look for a reliable professional to cope with the formalities on your behalf.

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