Don’t buy the first property you fall in love with
Especially if you are new to your property search. Take some time to find out what is on the market, get a sense of prices and then start to make some harder decisions.
Keep your emotions in check and look beyond the beautiful home styling and presentation. Ensure a comprehensive and thorough inspection - you can engage a buyer's agent to come with you if you like, for an objective view.
Can't see the forest for the trees?
Sometimes people have a hard time looking beyond the colour of the paint or carpet, or perhaps the layout of the home, or even the odour of the property. These are all things that can be changed.
Sell before you buy
Avoid the headache and bridging loan! You will never know what you can get for your current home, until you sell it. Agents may give inflated appraisals simply to get the listing, and you may be worse for wear if you do not achieve the price you need to achieve for the sale of your property when you have already purchased a new home. Where ever possible, sell your home first and then buy. Consider Find My Rental Property to assist in finding yoy a rental property in between selling and buying: it takes the stress out of finding a rental home and ensures you won't rent a property you come to regret.
Deposits
If you borrow more than 80% of the property’s value, you may need to take out lenders’ mortgage insurance, however you can absolutely get a loan with less than a 20% deposit. Speak with your mortgage broker. It may be possible to get a loan with only a 5% or 10% deposit.
Buyer beware
Buyers need to do their due diligence - and do it well! But let's face it: how often does the average person buy a property? A better option might be to engage a buyer's agent to conduct due diligence on the property you are seriously considering buying. I say "buyer beware" because you buy a property in the condition in which it is sold. If you find faults at a later date, that were there at the time that contracts were exchanged, you can’t get a refund or compensation or back-out of the contract.
Other fees?
Don't forget the other costs associated with purchasing: stamp duty, solicitor / conveyancer, insurances and removalists. Then, once you've purchased, expect to pay for water, strata (if it's a strata unit), council and possibly land tax.
Melissa Maimann is a licensed Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.