6 Essential Tips for Buying a New Property in Australia
There are plenty of properties available for sale in Australia, but not all of them are suitable for you. Some may lack the features you’re looking for, while some require hefty loans. It becomes essential to research well so you get the best possible outcome when purchasing your property. The tips below will help you avoid beginner mistakes when you’re buying a new property anywhere in Australia.
1. Have a Proper Budget
Before you start looking for a property, it is essential that you have a strict budget to avoid properties that can eat away your savings with high mortgage rates. A budget can also help in narrowing down your options and finding the home that fits your requirements and price range.
To start, try reading about the current property trends in Australia to get a better idea of the real estate market. Also, bear in mind the following expenses while making a budget:
- Down Payment
Make sure that you have funds available for a down payment. For instance, in Australia, you may have to put down at least 5% of the total property purchase value initially. The rate may differ depending on the lender as well.
- Closing Costs
You may also have to pay closing costs if you wish to finalize a property sale. This can also cost you an extra 2% of the total property purchase value.
- Other Expenses
Apart from the above costs, you may also have to pay extra for inspection, insurance, installations, repairing, and more.
2. Find the Best Mortgage Option
Apart from the budget, it is also imperative to find the best mortgage option while buying a new property. After comparing, if you find a mortgage that costs even 0.5% less than the other, it can save you a lot of money in the long run.
If you get confused, you can always consult an accountant. An accountant Newcastle can review your finances, and help you find the best mortgage option.
3. Pick a Real Estate Agent Wisely
If you simply don’t have enough time to check and compare different properties on your own, you’d be wise to consult a real estate agent. Make sure you pick your agent wisely by:
- Asking for referrals from friends and family
- Shortlisting the best real estate agents
- Interviewing the real estate agents
- Questioning them regarding their work and success
- Asking them regarding how they can help you out
Make sure that you avoid agents that over-promise without giving any clear answers.
4. Research and Compare Properties
When you are looking for properties, make sure you have your requirements, preferences, and your budget in mind. This will make it quite easy for you to shortlist and find the best property.
For instance, if you want a property that is close to a city center or in the main commercial area, then filter search for those. If you have a specific budget, then only shortlist those properties that are within your budget range.
You may also want to think about whether you want a property for a short amount of time or permanently. If it is the latter, opt for one that is more spacious, well-located, and comfortable.
5. Try to Negotiate With the Seller
If you’re willing to reduce some costs, then you can try negotiating with the seller to pay for any repairs, or you can ask them to reduce the price depending on the repairs. It is also possible to reduce the closing costs of the property by asking the seller. However there are many buyers in the market compared to the sellers, so you need to have excellent negotiation skills if you want to cut some costs this way.
6. Go for Property Inspection
Property inspection is vital if you want to avoid larger expenses later on. With the help of an inspection, you can know if there are any issues with the foundation, structure, plumbing, and other components of the property. Trained professionals carry out property inspections starting from about $200 AUD.
You will find various properties in Australia. However, you can only find the best one if you compare different properties, choose the right mortgage option, find the best real estate agent, and get the property inspected.
Once you follow these tips for buying a new property in Australia, you will definitely feel satisfied after buying one