Buying your first home is one of life’s biggest milestones and a decision that needs careful consideration. To ensure you make a good investment, there are a few key things to consider when you purchase a property. These include:
Purchasing a home is likely to be the biggest financial commitment you’ll make in your life, so it’s important to consider what you can afford.
In today’s market it’s easy to get carried away, so it’s vital that you’re realistic about what you want to spend. There’s no point wasting your time looking at properties which are way out of your price range.
Most lenders have mortgage calculators to calculate your repayments, or you can visit your lender and work out how much you can afford.
The best way to know your budget is to get pre-approved for a home loan. Home loan pre-approval is essential if you are bidding at auction and can give you an advantage in today’s ultra-competitive real estate market.
But your mortgage won’t be the only cost. Other costs when buying a home include:
- Loan deposit.
- Mortgage lenders insurance.
- Body corporate levies.
- Loan fees.
- Stamp duty.
- Conveyancing fees.
- Building and pest inspections.
- Moving costs.
- Ongoing property maintenance.
- Rates and water fees.
Finding the right loan
While it may be one of the least exciting parts of buying a new home, finding the right loan is one of the most important steps. After all, you may be paying it off for the next 30 years, so you want the best deal!
Navigating the world of lending can feel overwhelming, however it’s simply about comparing each option and finding a loan that meets your needs.
When choosing a lender, always consider the terms of each loan. These include:
- Interest rates.
- Terms – fixed or variable.
- Offset accounts.
- Redraw facilities.
- Special rates/discounts.
- Loan fees including discharge fee and annual fee.
Consider engaging the services of a mortgage broker because a mortgage broker is an expert in finding the right loan for you at the most competitive rate.
Once you have your home loan choice sorted, it’s time to decide what type of property you want to buy. This decision needs to be made with your lifestyle at the forefront of your mind.
Create a list of what you want from a property and what type of property will enhance your lifestyle. Do you want to live in an apartment? Or would you prefer to live on acreage? Your choices will guide your search.
Perhaps you love to entertain, so an amazing outdoor entertaining area might be at the top of your list. If you’re a passionate cook, a beautiful kitchen might be the most important feature you look for in a home. No matter what you want, your new home should fit your individual way of life.
Another important thing to consider is location. While you may get more value for money if you move away from the CBD, you also need to take into account the location of schools, hospitals, your work and shops. Time stuck in traffic can be frustrating, especially with small children or pets.
Wherever you move, you’ll want to feel comfortable and safe in the neighbourhood you reside in. To make your property search easier, make a list of suburbs or areas you’d be happy to live in and note the locations of local amenities that you’ll frequently visit.
The condition of the property – building and pest inspection
Do you have the budget to renovate, or would you prefer to move in with nothing to do? Another important consideration is the condition of the property you’re looking to buy.
If you have the money, you can afford to purchase a property that needs some work, but if your budget is tight, you may need to find a property where everything is done and you have nothing additional to spend.
It’s vital to know what you are buying, so you’ll also need to organise a building and pest inspection. This is an important step in the purchasing process and will make sure you’re not buying a property with hidden surprises that will cost you more money in the future.
At Building and Pest Inspection Melbourne our inspectors are experts and will check for structural issues, electrical problems, repairs and safety hazards and pests. They will check:
- roof space/voids
- subfloor/underfloor spaces
- wet areas
- masonry walls
- roof exterior.
Our detailed building and pest reports will give you a detailed insight into the condition of the property you’re looking to buy and may give you the opportunity to negotiate the purchase price or even withdraw from the contract if the problems are above and beyond what you’re willing to accept depending on the terms of your contract of sale.
Buying your first home can be overwhelming, however if you have a clear idea of what you can afford and what you want, it can be an exciting step in your life.
Need a building and pest inspection in Melbourne?
If you need a building and pest inspection in Melbourne or surrounding areas, it’s easy to book an inspection online or call Building and Pest Inspection Melbourne on 0408 666 539. We’ll just need your name, mobile number, email address, inspection address and the agent’s name and phone number. We’ll contact the agent to gain access to the property and email you an inspection confirmation.