What you need to know before you buy a home ?
Where to start when buying a house
Some of the first things to consider when you’re buying a home are how much you want to spend, where you’d like to live and what’s important to you as a buyer. Here are a few questions to ask yourself:
- How much house can I afford?
- Am I going to take out a loan?
- How I can get my finances in order?
- How much do I have saved for a down payment?
- Can I afford my desired neighborhood?
- Are home values increasing or decreasing in the neighborhood?
- How long will my commute take?
- Is the school district a fit for my family?
- Is it within walking distance to amenities and activities?
Once you have the answers to these questions nailed down, you can start your home search.
Be Realistic
Tailoring your search for a home according to what you have the capacity to afford could help avoid any disappointment or pressure.
While this is a great guide, the best way to work out exactly how much you can borrow is to speak to a lending specialist as they can give you the most accurate rate and credit requirement information.
Get your finances in order
When you buy a home, you’re making an investment in yourself and your future. You’re building financial stability, equity, and experience. You have a place to call your own and you can customize the space just how you want. Yet, you might be wondering how to get to that point — this is why saving up is so important.
Setting a savings goal to make a better position at the time of buying a home.
Understand what government incentives are available to you
Grants, schemes, concessions… there are countless government programs that make buying your first home a little bit easier on your bank account. According to realestate.com.au current NSW government grants and what they offer.
New homes:
The NSW FHOG of $10,000 is offered against new homes up to $600k, and house and land packages up to $750k in value.
As of August 1, 2020, NSW also upped the value threshold for parts of its separate First Home Buyers Assistance Scheme.
Homes valued up to $800,000 can apply for a full transfer duty exemption, with a partial exemption offered to homes between $800k and $1 million.
Established homes:
The First Home Buyer Assistance Scheme offers full transfer duty exemption on existing homes up to $650k, and a partial exemption for those valued up to $800k.
Land:
Under the First Home Buyer Assistance Scheme, first home buyers can pay zero transfer duty on vacant land up to $400k, or a concessional duty rate for land between $400k and $500k.
Learn more at the NSW Revenue Office.
Being aware of the latest government schemes and grants could help speed up your home buying process.
Research as much as you can
By taking your time and doing the necessary groundwork, you’ll be far less likely to overpay or settle for something you didn’t really want.
The Bottom Line
It’s vital that while you shop around for a home, you be absolutely sure that you can handle the closing costs. As a homebuyer, you need to know upfront what your maximum potential is for closing costs.
A top real estate agent in your area will be able to help you navigate the complexities and stresses of buying a home. An experienced real estate agent can potentially save you between 2% and 4% of the home’s listing price.
Don’t try to shoulder the responsibility alone. Instead, let an expert help get you the best deal for your money’s worth.