Smart advice for buyers from the JR Hunt Team
For the first time purchasers or experienced investors, there are some basic principles we believe should be used as a guide to making the best purchase decisions.
Know what you really need out of your new property
It’s a rarity that property hunter stumbles across the dream home that ticks all the 55 boxes. You can hold out for the fairytale ending or you can narrow your particulars down to what’s really important i.e. location near schools and station, scope to extent/ renovate. If there is room for a pool, that can come later.
Overcoming the emotional hurdle
It’s natural and expected that if you’re purchasing a first home or the home that you will raise a family emotions are going to kick in and its naïve to expect you can simply disconnect. You can however keep those emotions under control by seeking advice from experienced friends or third party to help you stay objective, spot any risks and make a practical purchase decision.
Budget boundary line
Don’t be mistaken into believing the money that bank will allow you to borrow for your property purchase is your budget. Too often, young couples in particular, are blinded by the attractive pre approval provided by their broker/lender and don’t consider their future lifestyle changes or interest rate movement. Exercise financial discipline and don’t over-extent yourself. It wont be your dream home if you can afford to furnish it or worse still sacrifice lifestyle and still be unable to make your mortgage repayments.
Be aware of those hidden costs
Before going ahead with any property purchase, be prepared and educate yourself on those hidden costs that need to be factored in. Apart from the actual purchase price of the property, there are costs for building and pest inspections, stamp duty and legal fees. Consider all moving costs, insurance, council rates and required property maintenance. There may also be fees imposed by your broker/bank such as application fees, valuation and settlement fees.
Be ready to act
In such a competitive market you need to be ready to act when the right opportunity for you presents itself. Having your finance/ pre approval ready when making and offer will confirm for the selling agent you’re serious and ready to act with a deposit. Making an offer subject to financial approval is not uncommon but may mean you will miss out.
If you're looking for property talk to the J R Hunt team, we would be so happy to help you on your property journey.