Top 5 Things to Know Before Buying Property in Australia

Top 5 Things to Know Before Buying Property in Australia

Many people argue that buying a house or an apartment is one of the biggest decisions in life. Neck and neck to getting married and choosing which college to go to. That is reaching the final decision to purchase is not easy, especially if it’s your first home. The current situation in the Australian real estate market might not the most favourable one but there is no need to fear if you keep these 5 things in mind. The top 5 things to know before buying property in Australia.

1. Buy when you’re ready

One of the biggest mistakes you can make is to purchase a property when you are not ready for such a huge step in life. This is often the case with families that have two or more children. Pressed for space, they rush the decision to buy a new piece of property without consulting their savings account(s).

Even single men and women need to make sure they have enough money for such a large purchase. The bank will scrutinize your finances to see if you’re eligible for a loan so you need to prepare months in advance, sprucing up your balance sheet. These are all strong reasons against rushing the decision to buy a property. Take your time and stay up to date with the market situation.

2. Paying the full price

If you thought that the price you hear from the real estate agent is all that you have to pay. Stop fooling yourself! It is never a single sum and a single payment involved. There are hidden costs that you might not anticipate at all. For instance, if you really like a house and would like to snap it before the next person gets a chance to take a look at it, then leaving a deposit is necessary. It ranges from 10% to 20% of the home’s value. So, be prepared to part with thousands of dollars in the blink of an eye.

Now comes the state’s turn to take your money. Stamp duty is a form of tax that you cannot evade. Furthermore, legal and conveyancing fees, finance, insurance, and building inspection are all going to knock a certain sum out of your wallet. Once you add mortgage payments, moving rates, council fees, and utility bills. It becomes clear that the price you are told initially is nowhere near the full price you will pay for a particular property.

3. Consider strata real estate

Now that you know by how much the property price can increase. Perhaps you are ready to give state real estate a thought. Australian strata scheme represent small self-governing communities that function based on democracy. Owners set their own rules of what is acceptable behaviour within their strata and entrust a manger to enforce these laws. Of course, they can change strata manager at any point in time. If they decide he is not dedicated enough to their community. The total costs of living in a strata community are lower. But you have to get acquainted with the exact mechanism strata works.

4. How to come up with the money

By far, the best option would be to pay in cash on the spot. Securing the desired real estate without much hassle. However, for most people, this is nothing but pure fiction. As they are forced to dabble with banks loans, mortgages and interest rates. When you enter the banks, here is the basic list of the things that you have to get for as little as money a possible: the interest rate, the temporal term of the loan (don’t go over 30 years), the ability to withdraw the funds, is interested calculated each month or each year, and is it possible to make additional payment. Bear in mind that these are just the essentials, as these are hidden clauses that bankers will try to sell to you. Be alert and don’t sign anything unless you are 100% sure of the terms you are agreeing to.

5. The house of your dreams

Not that you have the money, you are ready to hit the streets of Sydney and the Outback to find the dream home. Joking set aside; there are several factors that you need to take into consideration when choosing where to look for the property you want. Firstly, set on a location that is close to schools, shops, and even family and friends. If you commute by bus, then consider the distance from the nearest bus stop or if you’re a passionate cyclist, then explore the area for bike paths.

If you are aiming for a house in the suburbs, do some research on whom you will be living next to. Finally, check with the city council if there are development plans for that particular area. These have the potential to significantly raise the value of your property (or annihilate it id it’s up for demolishing).

Now that you are fully aware of these 5 things, you are ready to enter the Australian real estate market in search of your piece of heaven. Who knows, perhaps you might end up living in a nice strata community on the outskirts of Sydney.