House Hunting: What to look for when buying a home
The interest rate cuts of 3% are playing a huge part in the influx of first-time buyers that can now afford to get their foot into the property market. Another impact of the low interest rates is that financially pressured homeowners might be able to find ways to keep their property, rather than selling it. In certain neighbourhoods that mean fewer homes on the market, which creates a lot of competition for new home buyers.
So, what must home buyers consider to ensure they will turn their dream into a great opportunity? Whether it is a stepping stone to enter the market, or growing your investment or retirement portfolio, we at RED Properties have put together 5 top buyer tips to guide you during your hunt:
Get Qualified:
Although the online options will give you a good start, we found that the assistance of an experienced bond originator will give you a much better idea of what bond you will qualify for, as well as negotiate the best interest rate and get your bond approved quickly when you find the right property. In the current market, there are often more than one offer on a house and the buyer who have their financial ducks in a row and can secure their bond first, have a huge advantage.
Important extra expenses to consider is the transfer and bond fees. In most cases, the buyer will need to pay their transfer and bond fees upfront and this amount is normally not included in the home loan.
Remember to never open new accounts, buy a new car or make big financial commitments after you received bond approval since the bank might revoke their bond approval up until registration if they find that your financial situation has changed.
Location, Location, Location:
Always buy in the best area that you can afford. You can make changes to your home, but you cannot make changes to the community and area you live in. The better the area, the better your growth and profit when you want to sell again.
- Ask yourself how safe you want to feel
- Is it close to powerlines or vacant land
- How close do you want to live to the schools, hospitals, supermarkets, your work, extended family, etc?
- What is the traffic like at peak times into and out of the area
- Do you prefer a quieter or livelier neighbourhood
- It is always a good idea to drive around in the area at different times to get a feel for the neighbourhood before making an offer
Distinguish your needs from your wants:
Before you start looking for the right property, you will have to establish what is not negotiable to you in your new home:
- The desired size of the home (how many bedrooms, bathrooms, living areas, garages, parking bays, etc.)
- If you work from home, do you need a study or a home office?
- Is a garden a necessity and if so, big or small?
- Pool or no pool?
- Do you want to live in a security complex or prefer freehold property?
- Building preferences (flat or sloped roof, facebrick or plastered finishing, wooden or aluminium windows, etc)
- If you must choose, will modern finishes and open-plan living be more important, or an older house that offers space and future potential?
Plan your Timing:
Consider when you need to move, how long you need to give notice if renting and if you still need to sell another property in the buying process.
From the moment you make the offer, it takes another two to three months under normal circumstances for the property to register into your name and you will be able to take occupation. If you have specific dates/circumstances in mind, ensure the estate agent and seller are aware of these dates and build them into your offer to purchase.
Just remember that you might have to pay occupational rent if you move in before registration. Your agent will be able to explain all your options and negotiate the best deal for you with the sellers if they know upfront about any important moving dates.
Let the hunt begin:
Once you have a clear idea of what you want, what you can afford and what area's you prefer, you can begin your house hunt. Do some research on what the price trends are and what the average turnaround time for houses in the area is. Compare the value offered of different properties that fall in your price bracket in your chosen area and you will soon know if the asking price is market-related or not. Ask your agent how long the house has been on the market and why the owners are selling. When you find your match, do not take too long to decide, since good buys sell very quickly in the current market.
Finding the right home is an exciting time filled with hopes and dreams while keeping your feet firmly on the ground. Assess the neighbourhood, the property features and look at other structural and physical criteria. When you visit a new property, always keep your requirements in mind and you will enjoy the benefits of becoming a proud property owner for years to come.
