Once you decide how much you want to spend then you can work back from there to be comfortable with your weekly repayments. You don’t want to get into a situation where your payments are too high and your life style gets compromised, getting you frustrated. You might then sell the property too quickly ending up losing money. Therefore, step 1 is to go to the bank and ask how much you can to borrow and finding out what your weekly repayments are. Once you are happy with that then you can work from there, looking at what your income is, getting you qualified so you know exactly where you are.
Usually these days banks are looking for a deposit of around 10% to 20% and what they want to see is savings, your own personal savings, of which the minimum is about 5%. The bigger the deposit the better it is for you and the less you have to borrow. If you have 20% or more deposit generally lenders will not require you get mortgage insurance which is an insurance taken up by the lenders to insure the home loan so if you default the mortgage insurance will cover the loss of the loan. Also, banks and lenders are looking at your savings pattern and the security of your employment. If you don’t have the full 20% perhaps you can ask family or close relatives to help you with the balance of the deposit. That way it will save you thousands of dollars in mortgage insurance.
Normally you want to choose 2 or 3 suburbs because choosing more than that will get very confusing. There are many home buyers looking all over the place from the south side, north side to east side, getting totally confused because trying to compare prices in different suburbs is very hard as it all depends on the infrastructure , what’s available in the areas. What you want to consider too when you decide which suburbs is the price range you can afford, the infrastructure in the area such as schools, shops, public transport, shopping centres and also how close you are from family as it will make it more convenient to visit each other .
When you look at a property that you like after you’ve seen several other properties, the biggest question you want to know is whether you are buying the property at a fair market price to check if the property you are buying is at a fair market price, there are information from various companies where you can buy results and recent sales of the various suburbs, which it’s worth paying for. Also you might want to ask your agent to find out what are the recent sales similar to the property you like. This will give you an idea of what you are paying for and if it’s a fair price. Sometimes it’s better to pick up a property at a fair market price than to pick up a bargain. At first picking up a bargain might seem like a good deal but then you could be involved in thousands and thousands of dollars of home improvement and renovations that would probably cost you more than what you would have paid for the property for sale at a fair value. Therefore, when you look at a property, first find out if you like it and if your gut tells you this is the property for you, put in a reasonable and fair offer. You will get a better chance of it being accepted. Also bear in mind the finance process, building & pest inspections and settlement times.
When you sign a contract make sure you have a building and pest inspector to go through the property. The building inspector should be registered with the QBSA and should have a gold card. The inspector will be able to give you a report on the property regarding the structural soundness, if there are any termites in the place or any maintenance issues that need to be attended to. So make sure you always use a building and pest inspector and try to be there, especially in the last half hour, so you can go over the report with the inspector.
When you sign a contract make sure you use a solicitor. A solicitor will look after your best interests as well as give you some advice if you are unsure about certain things regarding the contract and guide you in the right direction. They will do different searches for you such as main road searches, title searches, council searches, and a few others worth paying for your peace of mind.