Your Finance Adviser

White sandy beaches and bright sunny days all year round! You could have been enchanted with Australia and you want to call it your abode. Buying a home is one of the biggest decisions you will ever make so you need to ensure everything goes as per plan.

You could either be a first-time home buyer, or starting to look around for a new one; it always helps to know what to look for when you venture out for home hunting. There are several parameters that one needs to bear in mind, however, we let you explore four-Must Dos before you sign on the dotted line.

PURPOSE

The purpose or the reason of your purchase will determine many of your decisions. Are you going to be the occupier? Or will you purchase the property and then lease it out? Is it a forever home or a transitional one? Whatever seems to be the driver, the type and condition of the dwelling you buy and how much work you are prepared to do to improve it, will only be successful if you have clarity on the tangible goal for investing into real estate.

PLACE

One of the most important decisions we will ever make in our lives is where to live. Location always dominates when it comes to buying properties. Ideally it should be the most important consideration, because the structure and layout of any home can be eventually altered. The location of your home determines many things that directly affects and influences a home’s value. These items include the overall quality of life, school choices, commute times, social engagements and much more. It is often better to adjust your price range in order to find a home in a better neighborhood, than to compromise on this aspect.

It is the location that will ultimately impact your everyday life and your home’s future value. A great neighborhood will help resell your home because of increased demand, faster selling capacity and for more money than similar houses in less attractive areas.

PRICE

Right price point is another important factor because you could miss out on finding the right home. While an ideal price remains only a myth as many a times the seller won’t bend on the number that you desire. Further the purchase price is just one aspect of owning the home. You need to consider various other expenses, such as insurance, taxes, property association fees, etc. that will be associated with you future habitat.

Remember the price of a home is only determined when a transaction actually takes place, else everything is notional.

PAY BACK OPTIONS

Is it worth to take the plunge into home ownership by investing your hard-earned funds or would taking a home loan in Australia with flexible repayment options be more beneficial? You may look at the below tips to ensure you get value from a mortgage broker:

• Research the market first and understand what type of home loan suits you the best
• Check the reputation of the lenders that are on your broker’s list
• Get clarity on the commissions to be paid for arranging your loan, including ongoing commissions
• Ask your Mortgage Broker to explain different options and why any recommended loan matches your financial needs
• Find out the refinancing costs. Ask for full details of refinancing costs and make sure they don’t outweigh the benefits of switching your mortgage. Check all calculations — brokers can make mistakes
• Look for best home loan rates by enquiring about rebates. Some brokers may refund part of their commission