“You need to take a step back and make sure it’s a logical, well-researched and considered decision, not an emotional one, and not a rushed one.”
With that in mind, here are eight things you need to know before you start your property search.
1. Carefully consider the types of property you can really afford
Before you start looking at property or even suburbs, make sure you know how much you can afford. That doesn’t mean the maximum you can borrow, it means the maximum you’re prepared to pay each month.
Home loan repayments – plus the associated costs of owning a home – impact your monthly budget far more than rental payments do.
Plan your budget with your home loan repayments in mind (use our calculator to get an estimate) and live on your new budget for three months – remembering to put away a sum every month for maintenance.
That way you can ensure your mortgage doesn’t become a millstone, and you are able to live your life the way you want to.
Don’t forget, when you purchase property there are a number of other upfront costs to cover too, including stamp duty – so make sure you factor those in.
After that, apply for pre-approval, so you can look at property with intent, rather than hope.
2. Research the local area. Then do some more research
There’s no such thing as being too informed when it comes to buying property, so take your time to know as much as you can about the suburbs you’ve identified as having potential.