Things to do Before buying a property?
Buying a property is a major investment. Getting your first home can be both exciting and stressful. It is a major decision that takes planning and research, and careful budgeting.
Know what you want and can afford
Make a list of:
- your preferred areas
- essential features
- your wish list of non-essential features.
Knowing what you want will help you avoid buying a property that does not meet your needs.
Budget before you buy property
Carefully assess your financial situation and desired standard of living when deciding how much you can afford to repay.
Take into account:
- your circumstances and financial commitments
- any future plans; for example, starting a family could mean a drop in income
- other possible changes, such as interest rate rises or unemployment.
Consider the costs of buying a property, including:
- legal and conveyancing fees
- loan establishment fees
- government charges, such as stamp duty and other taxes
- building and pest inspection fees
- moving costs.
Also consider ongoing costs of property ownership, including:
- insurance (building and contents) if applicable
- maintenance
- property rates and taxes.
Check for any concessions you may be eligible for, such as:
- first home owners grants for buyers of new home
When getting a home loan (or mortgage):
- you do not have to take the full amount offered by the lender. Instead, work out the amount you need and feel comfortable borrowing
- use loan simulators to see how the amount borrowed, the loan period and the frequency of repayments affect the time you will need to pay off the debt
- ask questions about fees and charges
- study the fine print on contracts, brochures and printed material.
You can find budget tools and information about home loans and mortgages on the Australian Securities and Investments Commission’s consumer website.
Get informed about the property market
Learn as much as possible about every aspect of the property buying and selling process, and the products and services.
