Read THIS before going to your next open home
Before you and perhaps your significant other decide on the “next” round of open homes for the weekend, STOP.
Buying a property in Australia is a big decision, and many people buy and regret their decision later, or they spend a lot of time aimlessly searching for “that” property without clearly defining what that property actually is and why that’s the property for them.
In today’s environment it’s so easy to log onto realestate.com and see what’s on the property market, and if you are on Facebook or YouTube, there’s no shortage of people telling you what you should be doing in the property game and often without taking any time to consider who you are, what’s important to you, and where you want to go in the future.
Buying a home to live in should not be treated exactly the same way as a property to invest in.
We all need a place to live, but what does that location have to offer and are these things important to you. What’s your criteria?
Does it need to be close to public transport? How long is the commute to your workplace? Are amenities easily accessible? Does the area offer good schools where you would be happy sending your kids? What about recreation, parks and entertainment?
Does it offer strong prospects for future growth? Property has been great for many Australians over the years but not all property has done as well as others.
Consider researching things that may improve its value in the years to come like development (planned and current). Things like new schools, hospitals, public transport or other infrastructure.
Also consider things that may hinder its value in the years to come like proximity to busy roads or highways, and relative position to other kinds of properties like commercial properties (petrol station, grocery store etc).
If you are considering buying property for an investment, again ask yourself what is your criteria? Am I buying for capital growth? Am I buying for income? How much capital growth or income do I expect and by when? What kind of property will match my goals? Is it a house? An apartment? A residential property or a commercial property?
Remember, if you are buying for an investment, the property itself is simply one of many vehicles that can help you get to where you want to go.
Once you have your criteria clearly defined, its time to bring your focus in further by seeing what you can afford right now. It’s also important to factor in the possibility of future interest rate rises so you can avoid over extending yourself and finding yourself in a difficult spot later.
You could call your current bank and ask them, but they won’t tell you if they will actually lend you the money unless you submit an application with them, and the amount they may lend you might not be enough to help you achieve your goals.
If you have a pre-approval in place we suggested you get it validated!
By validating your pre-approval using our FREE HOME LOAN VERIFICATION SERVICE , you will know in less than 10 minutes if your pre-approval is solid, and your lender will actually lend you the money.
If it comes with conditions, they can be reviewed and could be removed by simply changing to another lender.
Your interest rate may also be higher compared to other lenders too, so its worth making an informed decision on your chosen lender before proceeding.
If you would like get your pre-approval validated or get one in place now, Click here to book in a free consultation.
Have a great week!
The Team at Build & Protect Financial Services
