5 Things to Consider When Buying a House in Australia

Making a move in the real estate game? Buckle up, because it’s a wild ride. From crunching numbers to navigating negotiations, there’s a lot to consider when buying or renovating a home. But fear not, because armed with the right knowledge and a healthy dose of street smarts, you can make the most of this exhilarating journey.

So, let’s dive in and explore some key insights to help you navigate the twists and turns of the real estate world.

These are 5 simple tricks to help you decide when you’re considering buying a house in Australia.

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1. Be real about what you can afford

Alright, let’s talk real about what you can actually afford. Before you dive into the excitement of house hunting, you’ve gotta get real about your budget. Sure, renting is one thing, but owning a home comes with a whole new set of expenses.

If you’re thinking of taking out a home loan, it might seem tempting to go for the max amount you can borrow. But hold up! Take a look at what those monthly repayments will be and make sure they fit into your budget. Figure out the max you’re comfortable paying each month. Use our handy repayment calculator to get a ballpark figure.

Now, here’s the biggie: your house deposit. You’ll need at least 10% of the property’s value, no matter how much you borrow. So, that’s something to stash away for.

Once you’ve got your budget sorted, it’s time to see how much the bank is willing to lend you. Chat with one of our home loan experts and get pre-approval sorted. That way, you’ll know your borrowing power before you start making any offers or throwing down bids at auctions.

2. The sneaky cost you might never think about

Hey, before you go all in and sign that contract, there are some sneaky costs you don’t want to overlook. They might not scream at you like the big expenses, but trust me, they add up. Here’s what to keep an eye on:

First off, you’ve got your council rates. Yep, they’ll be knocking on your door every year.

Then there’s stamp duty. Ouch, that one can hit hard depending on where you’re buying.

Don’t forget about Lenders Mortgage Insurance. It’s like an extra tax just for borrowing a bunch of money.

And hey, you might want to think about extra insurance too. You know, just in case.

Loan fees, they’re a thing too. They might not seem like much, but they can nibble away at your budget.

Oh, and you’ll need a conveyancer to sort out all that legal stuff. Yep, another cost.

Last but not least, building and pest inspections. Gotta make sure there are no surprises lurking in your new digs.

So yeah, keep these silent costs in mind and factor them into your budget. Trust me, you’ll thank yourself later.

3. Researching is everything

Alright, let’s dive into some good ol’ research. Trust me, putting in the time now will save you from settling for something you’re not really into or blowing your budget. Here’s the lowdown:

First up, think about where you wanna plant your roots. Scope out different neighbourhoods and see which ones vibe with you.

Hit up those real estate websites and check out recent sale prices. Get the scoop on what’s what in the areas you’re eyeing.

Don’t be shy to shoot the breeze with local agents. They’ve got the inside scoop on how the market’s been behaving lately.

Expand your search beyond just your dream ‘hood. Check out what’s going down in the surrounding areas too.

Our property profile reports are your new best friend. They’ll spill the tea on what similar houses sold for and the nitty-gritty details of the sales and rental history.

Now, while you’re figuring out what floats your boat, think about what could boost the value of the place down the road. Stuff like:

• School zones: They can make a big difference.
• Any future building plans: You don’t wanna be surprised by a new freeway in your backyard.
• Transport options: How easy is it to get around?
• Access to amenities: ‘Cause who wants to trek miles for groceries?
• And of course, the vibe of the neighborhood: You wanna feel at home, right?

So, do your homework and think about both what you want now and what might sweeten the deal later on. Trust me, it’ll pay off.

4. Renovation?

Alright, let’s talk about sprucing up your digs. If you’ve already got a place, giving it a makeover could save you the headache of hunting for a new one and dealing with all those hefty costs like stamp duty, legal fees, and agent commissions.

Now, renovations aren’t all sunshine and rainbows. There’s gonna be some cash and inconvenience involved. Like, where are you gonna crash while the sledgehammers are swinging? And don’t be surprised if you end up blowing your budget and missing deadlines. Plus, maybe you’re dead set on buying a new crib anyway.

If that’s the case, no sweat! Just have a chat with one of our home loan gurus. They’ll break down all the financial nitty-gritty involved in selling up and moving on.

5. Don’t forget to negotiate for the best deal!

Alright, let’s talk about getting the best deal on your terms. This decision is a biggie, possibly the biggest money move you’ll ever make. So, don’t let anyone pressure you into a snap decision.

• Remember, you’re in control. If the price ain’t right, you can walk away. There’ll always be other places up for grabs.

• Don’t let your heart rule your head. Those real estate agents are slick – they’ll play up any emotional ties you have to the property to seal the deal.

• Even after you’ve signed on the dotted line, you’ve still got a cooling-off period. Take those three business days to mull it over and bail if you’re not feeling it.

Now, when it comes to negotiating:

• Check out the demand. If nobody’s biting or there’s a bunch of similar homes on the block, you’ve got some leverage. You could even throw in an offer below the asking price.

• Forget the sticker price. Look at what similar places are actually selling for in the market.

• Price isn’t the only thing on the table. You can haggle over when you take possession, offer a leaseback if the seller needs more time, or even negotiate repairs and furniture.

Remember, the agent wants to close the deal too. They’re working for the seller, but they’re also itching to get paid. So, it’s worth playing nice with them too.

Final thought

So, there you have it, my man! As you dive into the world of real estate, just remember – it’s not just about finding a house; it’s about finding your home. Whether you’re wheelin’ and dealin’, pondering a reno project, or scoping out the perfect neighbourhood, stick to your guns and stay true to what you want.

With a bit of research, some smart thinking, and a pinch of negotiation mojo, you’ll soon be kickin’ back into the home of your dreams. So, what are you waiting for? If you’re looking for a place to settle your family, then let the adventure begin!