Can you afford to buy a property?
Are you planning to buy your first home?
The possibility of even getting into the ever-rising property market starts with knowing if you can afford to! It’s that simple.
Here is our 4 check step list- to assess and prepare to “afford to”:
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Have a deposit ready
The bigger the deposit is, the lower your loan to value ratio (LVR), meaning possibly a lower monthly repayment.
By working out what upfront deposit you can afford, you can determine the right property price range and locations to focus your search efforts on.
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Get into a regular savings habit NOW
Start a healthy savings plan as early as possible- try and put aside a monthly amount equivalent to your future loan repayments.
This not only sends a great signal to the financial institution that is funding your loan, but also helps you prepare mentally and financially for being a “borrower.”
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Speak to a mortgage broker about a loan pre-approval
Getting your loan pre-approved before you start your property search is a great way of knowing what you can afford.
A good mortgage broker or financial adviser can help you set this all up. Find out how long the pre-approval is valid for.
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Engage a real estate agent and get to know the local area
The price of property can vary significantly not only from one suburb to another but also within the same suburb.
In addition, prices will vary based on a number of other factors including the size of the property, number of bedrooms and its condition.
It could take months of local research to pinpoint the areas you can afford to buy in. A good local real estate agent or buyer’s agent can assist you through this process.
Need help finding a good local business?
If you want to find reliable local businesses to help you through the buying, selling and moving process, why not connect with one from our Tradebusters Connect free trade and business directory. From local tradies, real estate, finance professionals and more, we have you covered.