18 September 2013

Caught in the spring hype

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caught in the spring hypeWith spring well on its way, both sellers and buyers will be out in force. For buyers, spring can be the perfect time to secure your dream property. But before jumping into anything, it is important to prepare yourself for the financial and emotional responsibility of property ownership.

Whether it’s your first time or you’re a seasoned buyer, purchasing a property is probably the biggest financial decision you will ever make. To ensure you end up with the property of your dreams, consider the following factors when making your next purchase.

Budget
Nobody likes to hear the word budget, but it is the single most important factor when purchasing a property.

Before you even start looking at open houses or planning your move, sit down and work out a budget. Be realistic with your expectations and leave a buffer in case the unexpected happens.

Once you have worked out your budget, look for properties that fit the guidelines and be prepared to walk away if the price is going to put a strain on your finances. Even the most extravagant house isn’t worth it if you are eating baked beans and sitting on the floor to pay off the mortgage.

Caught in the hype
Once you have set a budget, it’s time to do your research and start looking for that perfect property. Spring is usually the busiest time for open houses and auctions and therefore it is easy to get caught up in the hype of it all and be influenced by other buyers.

Make a list of all things you are looking for in your new property, and keep a tally of how properties stack up against each other. Don’t be afraid to visit a number of open houses, even if you feel the property may not be right for you – getting an idea of the market you are interested in and the type of property you are looking at is beneficial for when the time comes to negotiate price.

Hidden costs
You’ve stuck to your budget and found the perfect property. However, before you go popping the champagne, there are still a number of items to check off your list.

Before signing any contracts, it is important to have a thorough building and pest inspection completed to ensure the building is structurally sound and to make sure there will be no nasty surprises when you move in.

You will also need to consider additional expenses that may need to be paid up front, including stamp duty and lender’s mortgage insurance (LMI), removalist hire and cleaning fees for the property you are leaving.

Spring is the perfect time to hit the streets and see what is available in the property market. But before you go, make sure you have a plan in place and know exactly what you are looking for.

If you would like to find out what loans are available this spring, have a chat with us today!

The author is an employee of Verante Financial Planning in Castle Hill, Corporate Authorised Representative of Magnitude Group Limited, Licence No 221557, Magnitude Group Limited ABN 54 086 266 202.

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