There is nothing as exciting than the experience of buying a new home in Australia. A house is one of the biggest purchases that most people will make in their lifetime, so when you decide that it is time stop renting and own your own property, you are making a life changing decision.
The Pride of Ownership
One of the advantages of buying your own home is that you become your own landlord. Instead of having to abide by the rules and regulations set forth by your prior landlord, you can live your life the way you want. When you live in someone else’s home or property, you have to respect your lease agreement. Common reasons that renters eventually decide to become owners are to be able to keep pets in the house or to be able to smoke indoors without breaking their rental or lease agreement. A landlord might also limit your ability to decorate the living space in a way that you want. When you buy your own house, you are free to paint and decorate your space in any way that you see fit. If you want to have a dog and a cat, no one is there to tell you that you cannot keep them. Owning your own Australian home gives you the freedom you want to do as you please.
Build Equity
Homes and property have always been a logical investment because not only do they give you some place to lay your head down at night and call “home,” this investment has the chance to build equity over a few years. In many cases, new home buyers will need to remain in their property for ten years or more to see the equity in their home increase. Well qualified buyers that have a larger down payment, a shorter loan term or buy a home at a significant discount may see their equity increase faster. Total equity can also be affected by trends in the real estate market. If you buy your home when home prices are high and the market undergoes a slowdown, your home value and equity can go down. If you buy when home prices are low and there is an upswing in the real estate sector, your equity is affected positively. If you are not selling your home, you can theoretically hold your way through either market.
Things to Consider
When you decide that it is time to buy a home, there are many things that you should consider. The first thing that you will need to evaluate is your current financial situation. Optimally, you should have a significant amount of money saved to use as your down payment. The more money that you can put down on your home, the better it is financially for you. Australian home loans allow for smaller down payments, but when you do not have a lot of money to put down, you might have to agree to a 20 to 30-year mortgage. In addition to having a significant down payment, you will want to take great care to have a clean credit report. A better credit score will help you qualify for lower interest rates and get approved for your loan. People who have spotty credit may not get their loans approved or qualify for lower interest rates. If you are in the category of people who have less than perfect credit, a loan officer will be happy to give you advice on steps that you can take to improve your credit. Getting pre-qualified for a home loan gives you the confidence you need to start searching for a home that is within your loan amount.
Find Your Dream Property
Once you have gotten pre-qualified for you home loan, the next step is to start searching for your house. The internet has made it easier than ever to check out houses from the comfort of your living room before going to see them in person. Virtual tours and photo galleries online give you a good idea of what the inside of the home looks like before speaking with a licensed realtor. Of course, you will want to do a “reality check” before you commit to buying a property. Schedule a tour of the property and take care to pay attention to the neighbourhood you are thinking about moving into. It is a good idea to drive by several times during different times of the day to get a feel for your potential new neighbours. Are there people lingering around the street corner? Are kids out playing in their yards? Are there a lot of noises? Small details like this will matter a lot once you move in and you are on the hook for a long-term mortgage. Remember, you will be moving here and likely be living at this place for a few years, so making sure the neighbourhood is quiet and crime free is important. Otherwise, you might feel “stuck” in a housing situation with no fast or easy way out.
Plan Your Move
After you have selected your new home and signed your mortgage agreement, moving day will come up quick. When you are packing you might consider sorting your belongings and getting rid of things that are no longer important or relevant in your life. You never realize exactly how much stuff you have until you have to move it. If you are planning a self-move, a truck will come in handy to move all of your items to your new home. You might consider asking a friend or two to come over and help you on the big moving day to get it done quicker and more efficiently. If you have extra money to spare and you do not want to get bogged down in the physical labour involved in moving your belongings, a moving company is always happy to help get your stuff moved quickly and professionally. Whatever method you decide on, good luck on your upcoming home purchase!