Things You Need To Know When Buying A Home NSW
One of the largest investments a person can make or a family is purchasing a house. However, without the right information on how to go about it, it may prove difficult and time-consuming. Many house owners wish they knew what they know now about buying a house before they invested their money. Whilst some tips seem obvious to people who have bought property before, to people who are beginning to invest in property find them helpful. Buying a new home requires you research many things and have enough information about property. Below are beneficial tips to know before purchasing a home.
A 20 percent deposit is not a must-have
House buyers who have saved less than one-fifth of the total cost of the property can get mortgages from lenders if they are willing to travel that path. However, the buyers should pay lender mortgage insurance, which is used as a security by the lenders in case the purchaser is not in a position to pay for the property. The lender, in most cases, adds the insurance fee on loan and may charge you higher rates. For people who can afford to pay for the 20 percent deposit, they should go for it as it is the most preferred option, as stated by Laura Higgins, a senior executive leader with ASIC’s.
Banks will lend you money
When it is a good deal to borrow money from a bank to buy a property, sometimes it is not the most suitable option. Most of the banks that lend people money to buy their dream house intentionally are willing to give them more than they can afford to pay. When you borrow more than you can pay, this can lead to a lifestyle that you cannot afford or do not suit you, making you unhappy, and that is not what you want. Only borrow what you can afford to pay and live within your budget. Besides, do not feel tempted to buy a house that is far much beyond your budget just because your bank is willing to finance you.
Additional costs associated with purchasing a property
There are some costs that come with buying a house, which is essential to understand as you do not need surprises when signing the final documents. Government fees, LMI, transfer fees, stamp duty, building, and pest report charges, solicitors and conveyancing fees are some of the costs associated with the purchase of property that adds up to thousands of dollars. Moreover, if you are buying a house with a friend or family member, let them help you research. Doing so will save you from surprises when you are finally ready to sign the final documents.
Loan Pre-approval is not an assurance of being rendered a loan
To see if you are eligible for a credit, many lenders weigh your debt, expenditure, and income. Pre-approval service gives you the mandate to check on the property offers that suit your budget. Experts say pre-approval is excellent in giving you a realistic picture of your budget, thus helping you to plan on the kind of property you want to buy. It is good to conduct this service at the early stages of house buying so that you stick to property within your budget than going ahead to check on the property you cannot afford according to your budget only to end up disappointed.
Take up insurance as soon as you sign the contract
After a seller and a buyer agree on the prices, the buyer may not move into the new house immediately. Most lenders advise buyers to take up insurance cover against damage before they move in the home regardless of what the legal liability against damage states in your region.
There are different conditions for purchasing auction home
Some agents find it easier to sell their houses through auction, this can be a bit tricky for buyers who are not sure about their finances or even pests and building reports. Nonetheless, with an auction, if you meet the reserve price and win, you will have to purchase the property. The best way to buy a property through auction is to do a lot of research to familiarize yourself with what is expected of you to avoid traps.
Useful links you should check out before purchasing your new home –
- Property Search 4U
Engaging Property Search 4U as your exclusive buyer’s agent will redress your disadvantage, by having your own personal advocate committed to achieving only your objectives. A competent professional dedicated exclusively to buying or leasing property on your behalf, who can confidently answer your property search questions, and deliver a solution that streamlines the entire process.
- Real Estate.com.au
The biggest Real Estate website in Australia. Find the most properties on the net.
- Office of State Revenue NSW Treasury
The Office of State Revenue (OSR) is one of two offices which comprise the NSW Treasury. OSR administers State taxation, collects revenue, outstanding fines and penalties, develops policy and implements legislation relating to State taxation for and on behalf of the people of NSW.
- NSW Office of Fair Trading
The primary role of the Office of Fair Trading is to administer these consumer laws and to look after the rights of consumers. At the same time they advise businesses and traders on fair and ethical practices. The aim is to achieve fairness for all in the marketplace.
- NSW Department of Housing
The Department operates under the Housing Act 2001 to manage the New South Wales Government’s housing portfolio and develop broader housing strategies. Also responsible for administering the various Commonwealth and State Housing Agreement Acts.
- Australian Institute of Conveyancers – NSW Division
As the professional body representing licensed conveyancer in NSW the purpose of the Australian Institute of Conveyancers NSW Division is to promote, reform and improve the conveyancing profession; to represent the views of the profession and its members; to encourage and promote the study of of conveyancing, and to encourage honourable conduct and best practices throughout the profession.conveyancing, and to encourage honourable conduct and best practices throughout the profession.
- Home Price Guide
Newsletter Sydney Edition – 15 November, 2007
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