For most of us, buying a home is one of the biggest investments we will make. So it is important to take the necessary steps to ensure it all goes smoothly and doesn’t cost you unnecessary stress, time and money.
Here are 5 things you should make sure you have done before purchasing your next home.
1. Ensure that you have finance approval
Make sure your financial institution has approved your loan before you sign anything. As a conveyancer, it is heartbreaking to see clients get to exchange and have to scramble to get their bank to agree to finance, or worse still pay any penalties for not being able to go ahead with the purchase.
Most finance institutions offer a conditional approval, or pre-approval where they will grant you the loan subject to conditions such as a property valuation (always check with your institution if they do offer this service and what their conditions are). Having pre-approval will give you an idea of the price range for properties to view.
See the Housing NSW guide to Financing your home purchase for further suggestions.
2. Be absolutely convinced that you can afford it
It is important to remember that there are other costs involved in purchasing a house, not just the purchase price. These include stamp duty, legal fees, as well as rates and insurance ongoing. Think about what other commitments you have and how repaying a loan the other costs may impact on those other responsibilities.
It is also worth remembering that interest rates fluctuate. So always factor in a higher rate than the one you are offered by your bank or institution. Although most of us hate them, a budget can really help you understand how much you can afford. Here are some links to budget trackers and information on how to set a budget. This NAB loan repayment calculator is a fantastic guide to help you work out the repayments on the amount you want to borrow.
3. Consider if your purchase is a stepping stone or your forever house
Depending upon your stage in life, your requirements for a house will change. Are you a young family starting out? You will probably want schools and parks close by, as well as enough room for your growing family.
A family that has a house full of teenagers is likely to need more recreation space than a family with young toddlers, or you may be an empty nester downsizing.
Perhaps you do not need to worry about a family at all, but need to be close to transport to avoid that long commute.
See our article on how to buy your dream home for more information on finding the house that suits your needs.
4. Have the contract reviewed
When purchasing a property in NSW the buyer’s rights depend on what’s in the contract for sale. This is why it is imperative to have a conveyance or solicitor review the contract, prior to you signing anything.
Many of the terms in any contract for sale will be ‘standard’ ones, which are provided by REINSW and Law Society NSW and are fair to both the seller and the buyer. It is important to know that a seller may also include their own terms in the contract. These tend to favour the seller at the buyer’s expense. That’s why the first thing your conveyancer will do is make sure that the contract for sale isn’t just legal, but that it also fair to you.
5. Undertake the necessary inspections i.e. building, pest, strata, survey
We can’t stress enough how important it is to have the relevant checks/reports carried out on your potential purchase. You are investing a lot of money when you purchase a house, so it is extremely important to make sure you know exactly what you are getting. See our article on what to look for at an open home and make sure you talk to your conveyancer about checks/reports. You don’t want to be lumbered with the previous owners issues, or buy a property only to find out land that you thought was included, didn’t actually belong with the property.
Remember your conveyancer is here to help. If you are thinking of purchasing a property in the near future, at go go Conveyancing we are happy to talk our clients through this list when they have a prospective purchase in mind. Don’t leave it too late, talk to your conveyancer before you make that offer, not after!
This article is for informational purposes only. go go Conveyancing will not be liable for any errors or omissions in this information nor for any losses, injuries, or damages from the display or use of this information.