Purchasing a property is a significant and ongoing financial commitment. Preparation is the key, and you will need to keep both feet on the ground. The following steps create a good guide for you to consider.
1. Budget setting
You need to be aware that there are more than just repayment costs to consider. These include loan application and building inspection fees, mortgage insurance, stamp duty, and solicitor fees, to name a few. Consider that lenders may calculate your ability to repay up to two per cent above the current rate in case of an interest rate rise. This could affect your ability to secure finance.
2. List your ideal property features
This will help you avoid getting carried away and buying a property that looks wonderful, but does not meet your needs. Also make a wish list of all the desirable features you would like, to aid the decision making process.
3. Secure your finance.
Consult your bank, or employ the services of an intermediary. Make sure you are well informed. You will need to figure out the type of loan that best suits your needs. You may want to lock in a fixed interest loan, or a variable loan might be more suitable. Talk to a solicitor or conveyancer to investigate the current government grants that may be available to you if you are a first homebuyer.
4. Begin the search
Spend some time researching the area where you intend to buy. Consider schools, local amenities and public transport. Discover what recent properties in the area have sold for.
5. Arrange a building inspection
When you have found your ideal property, make the effort to arrange a building inspection. The examiner will check all accessible areas of the dwelling to determine its overall condition. Any defects will be noted and a comprehensive building report issued. Building inspections should be undertaken by a qualified professional to guarantee that you receive detailed knowledge of the structural condition of the property. A building inspection is money well spent and could save you thousands in the long run. Redlands Realty has no affiliation with building and property inspectors, however we are happy to provide the details of local, qualified inspectors that we would personally use if we were buying a property for ourselves.