Is buying a property your New Year resolution?
2015 was a fantastic year for property in Australia. Our major property markets saw some significant capital gains and many property sellers made a good profit. There were also record numbers of auctions around the country – but competition was fierce and if you were looking to buy, securing the property you wanted wasn’t always easy.
2016 promises to be another competitive year for property purchases, so if you want to get in on the action, you’ll need to be on top of your game. If your New Year resolution is to buy a property this year, here are some things you could do to help you succeed.
1. Identify a goal
It’s very easy to make a New Year resolution, but most of us do this every year and very seldom stick to it. That’s because a New Year resolution needs to be very specific if you want to achieve anything.
Having a vague resolution such as “Buy a property” isn’t going to get you over the line. You need a more specific goal like “Buy a 3 bedroom house near X before June 30” or “secure an investment apartment in X before Y”. Adding a sense of urgency to your goal will motivate you to keep on top of what you need to do to make a successful purchase. Below we talk about some of the steps you will need to undertake to reach your goal – you may find that it will help to schedule these activities in your diary so that you don’t put them off.
2. Be ready to act
Procrastination is the enemy of success. There are often thousands of properties on the market and if you don’t know where you want to buy or what type of property you’re searching for, you’ll find yourself procrastinating about which properties to view.
The answer is to sit down, make some decisions and then do your research. If you are buying a property as your own home, you can consider which suburbs will be convenient for you in terms of work, whether you need to be near public transport, whether you need an apartment or a house. If you are looking for a property investment, you’ll need to consider properties that meet your investment strategy, have good capital growth potential and are easy to tenant.
3. Set a realistic savings budget
Good money habits are very important if you’re planning to get a home loan this year. Lenders don’t just look at how much of a deposit you have, they assess your ability to save and make repayments.
Taking on a home loan is a big financial commitment and you will also have the added expense of maintaining your property, paying rates, insurance and other expenses on top of your mortgage so you will need to demonstrate that you have your budget under control and are a good saver.
To set a monthly savings target, you could start by making a list of your expenses. It’s important that you are realistic and make a comprehensive list, so that you understand where your money is going and where you can cut back if necessary when you get a home loan.
4. Get your financing in place
We suggest you talk with us about getting pre-approval on your home loan before you start looking at properties you might like to buy. Establishing a price limit for your purchase is key.
We will help you to fully understand your financial position and help you to determine how much you can borrow and as a result, what kind of property you can afford to buy. Setting a realistic savings budget first (as mentioned in point 2 above) is an important part of this process.
It’s a good idea to make talking to us a priority, as it could make all the difference to your success. If you know exactly what you can afford, you will save yourself hours of time looking at property listings and save days making inspections on homes.
5. Get a professional team on your side
Let’s face it, buying a property isn’t easy. Having a professional team on your side could make all the difference to your success. You’ve started out by getting a professional mortgage broker (well done), but you may also need help from other professionals as well (and in many cases, we can help you by providing a referral).
Buyer’s Agent: If you are short of time, you may want to consider engaging a reputable Buyer’s Agent. They can do a lot of the leg work in locating you suitable properties to view and make a big difference when it comes time to buy.
Real Estate Agents: If you don’t want to go with a Buyer’s Agent, you may like to get in touch with reputable real estate agents in the areas you want to buy.
Conveyancer: When you locate the property you want to buy, it will pay to have a Conveyancer or Property Solicitor lined up so that you can move quickly.
Inspectors: When you locate a property you want to purchase, you’ll need to get building and pest inspections done before the auction date. Line up your inspectors beforehand and you’ll save yourself a lot of time and hassle in locating them when you need them.
Remember, we’re here to help you keep your New Year resolution to buy a property in 2016! It won’t be easy, but we’re sure you’ll find it’s worth the effort. We’re ready to help you assess your financial position, and help you get pre-approval on your home loan so that you can start the process of locating an opportunity and making a purchase. Give us a call today and let us help you get started.