7 key considerations you need to make before you buy property

Buying your next property is like playing a chess game. You need to make right moves to win.
Key considerations you need to think before purchasing next property

Have you started to notice things about your house? New things, like the way the garage door creaks a little. Or, the funny smell behind the fridge. Or, the way you have to cram your whole family into a space meant for two, Or your family becoming bigger.

You love your house, but maybe you are not in love with it anymore.

Do not rush it. Take a moment to break up properly. Make sure you tick every box on our checklist before buying a new house.

1. Be prepared

Just like watching Marvel trailers, you need to assess something before making a new financial commitment. Selling your home and buying again comes with a host of costs and headaches, including the potential drama of juggling two loans and trying to match up settlement dates. Plus, there are often fees like stamp duty and agent’s selling commission.

Save time, stress and awkward interactions with your old house by putting together a comprehensive budget and to-do list before the havoc of your home upgrade begins. It is worth reviewing your current home loan and analysing where you stand with the current mortgage. Also, reach out to the local mortgage broker to get your finance assessed.

2. Make a choice: chicken or egg

Whether to buy property before you sell your current home is an age-old conundrum and depends on your circumstances. Weigh the pros and cons, and make sure you have contingency plans in place before you sign on the dotted line.

3. Understand your new borrowing power

Things have probably changed since you bought your current house. You are different, now. Maybe you have got a better job, or you have shed some costly responsibilities. Plus, if you have been keeping on top of your repayments, you probably have some equity to leverage.

It is important to understand how owning your current property affects your next move. You might have more to spend or the ability to service a higher loan, but you will not be eligible for first home buyer benefits. Your local finance broker can assist you with assessing your financials and advice your options.

4. Change your location, not yourself as a person

Yes, we all need a post-breakup hair refresh. But you are still you. Your next house should satisfy your needs, even if you are moving somewhere new.

Where you choose to go next affects how much you need to pay (and borrow), as well as how quickly the property will go up in value (and your quality of life with it). Make sure you buy property in the right suburb to suit your financial and lifestyle needs. Most employers now allow their employees to work from home since the pandemic. If you are contemplating on moving into a bigger house with a backyard and quieter suburb or even regional area to purchase your next property, it is vital to understand your long term goals and lifestyle objectives i.e. family and other commitments.

5. Decide on the best style of property for you

We are not talking about lush interiors – although we will not stopping you from finally buying that luxurious daybed. You need to choose a property that works for your lifestyle.

While an apartment is low maintenance, a suburban house might be the only place to fit your growing clan. A heritage home might make you feel more like a nineteenth-century poet, but flash mod-cons are often underrated. Follow the lure of inner-city living or spread out in a country abode, but make sure it is the right choice for your circumstances.

Be realistic about the non-negotiables, such as the number of bedrooms/bathrooms. And try not to duplicate anything you dislike about your current home. We all have a type, but you are moving on for a reason.

6. Put your best house forward

Spend some time learning how to increase the sale value of your current property. There are heaps of simple things you can do to make it more appealing.

The new owner will probably want to put their stamp on it, so do not dive into a major home renovation too close to your sale date. Concentrate on inexpensive home improvement options, such as cleaning up the garden to create curb appeal, de-cluttering the interior and giving the walls a fresh coat of paint. You may also consider using recycled items to decorate the interior and exterior of your house as well.

If it is within your budget, consider hiring a stylist for any home opens.

7. Upgrade your loan with your home

Buying a new house is a great time to review your home loan. Do not just roll it over into the same kind of product. You probably have basic home loan know-how after purchasing your first property, but there is always something new to consider. Get in touch with the local independent mortgage broker to make sure your new loan has the right rate and features. It is essential to do your due diligence about the property that you like to purchase and suburb that you would like to move into and most importantly you can afford the new loan and finance in order before you make any new commitments with the new property.

This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice. The original content was quoted from ME Bank The Feed Blog.

9 views0 comments