Buying a home is a big step! There’s a lot to consider, from the
merits of buying over renting, doing your research, inspecting
a property, making an offer, contracts and settlement. We want
to take the mystery out of the home buying experience, so the
Harcourts Buyers’ Guide will cover everything you need to
know from start to finish.
Buying Vs Renting
When it comes to the decision of buying a property versus renting one, there are a few factors you need to consider. On the one hand, buying a property certainly has significant immediate costs, but on the other, renting means you’re effectively paying off someone else’s mortgage. So if you’re weighing up which option is right for you, consider both the short and long-term pros and cons of both.
Sorting Out Your Finances
Most lenders will require you to have a 20% deposit for your home loan. For example, if you wish to purchase a home worth $400,000, you would require an $80,000 deposit. However, most lenders have loan products to borrow up to 90% of the property value. If you don’t have a 20% deposit and need to borrow more than the 80% threshold you should speak to a mortgage adviser who can talk you through your options.
Doing Your Research
Once you have your finances in place, you’ve worked out your borrowing capacity, and perhaps sought pre-approval on your home loan, it’s now time to get to know the market. Start to look at neighbourhoods that would suit your needs and your budget. A great place to start is online. There are lots of property comparison sites on the web which will give you an indication of the average sale price of houses, land and units in an area.
Take advantage of an open home and use the time to perform a thorough property inspection. Later on, you’ll want to engage the services of a professional to inspect the building’s structure and for pests, but it’s a good idea to use your initial tour of the home to perform your own inspection.
Making An Offer
Once you’ve found the perfect property for you, it’s time to make an offer. Depending on the type of sale, and even the state or country you live in, the process of making an offer can vary.
Once the purchase is complete, it’s now time to settle into your new home! When preparing to move there are always so many things to organise and remember. Often it’s the little things that make all the difference. Use our handy checklist to help make the whole process smooth and stress-free!
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