It is clear that the decisions which a home buyer makes can have a major impact on your financial status in the future. It is important that property buyers don’t feel under pressure whilst making their decisions, but should rather take their time to make sure that they don’t regret any decisions in the future. It is important to do some homework before making any drastic choices. In this article I will give some advice on what a property buyer should consider before making the purchase and applying for a home loan.
Professionals in the real estate trade has said that by buying property is a major investment in one’s life, therefore it is important to make sure that you have your facts right regarding the buying process. It is important to know that you should not only base your decisions on feeling alone, although the home buying process can be a very exciting time of your life. There are many factors that you should consider before making the purchase. Next I will give a few tips on how to obtain the correct information to make sure that you won’t regret anything that you might have done.
The first thing that you should do is to assess your finances and your affordability level. The first and most important thing to do is to make sure that you will be able to afford the property which you want to buy. By consulting with a bond originator will help you to see for what home loan you can apply for and how much you will be able to afford. While these figures aren’t guaranteed, they will surely give you an idea of in what price range to shop for. By getting pre-qualification will also show the sellers that you are serious on buying. In the current market we see very few people who qualify for a 100% bond, there for will the pre-qualification also help you to see what deposit you will be looking at. There are also some other factors which should be considered. You should know that there are many other expenses which you will have to pay upfront. Thing like, transfer duties, home insurance, taxes and rates.
It is also very important to obtain as much info as possible on the property. The more information you can obtain, the better your end results will be. We all know the popular saying which says that knowledge is power. The more a buyer knows about the current market and the area of the house, the better prices you will be able to negotiate. It is also important to know how long the property has been in the market for. That should give you an idea of how lenient the sellers will be with the negotiations. A professional estate agent will be able to give lots of valuable market related info on properties in a chosen area.
Another thing that one should do is to check out the chosen neighbourhood. If you have decided upon the area which you want to buy property in, one should first look at a few other factors before signing any papers. The factor which has the biggest impact on the value of property is where the house is situated. One should look at factors like, traffic in the area, crime stats, condition of the infra structure and the quality of the schools. These thins will have a big influence on the value of the property. This information can be easily obtained by the local municipality and the local police station.
Another important factor is to make sure that the property is in a good state. People can make use of a professional home inspector to see whether the house is in a liveable state. Although that there might be small things which can be fixed, damage to the structure of the house can become very expensive to repair, making it not worth buying.
We should remember that knowledge is power, and armed with a lot of information can and will help you to make the right decision. The only way that you will ever be happy with property is if you do your homework well.