Professionals Wagga Wagga
93 Morgan Street Wagga Wagga
02 6923 9900
02 6921 9924Contact us
Buying a home, whether it’s your first or fourth, is always exciting and here at Professionals Real Estate Wagga Wagga, we never forget that. You’re making plans for the future, choosing a home that appeals to you, finding a location that suits your needs, and investing in one of the safest methods for acquiring wealth.
Although exciting, this can be a daunting experience if you don’t have sound knowledge and understanding of everything that’s involved. To assist you understanding the steps when purchasing a home, we’ve compiled some useful tips such as how to organise your finances, understand the market, starting your property search, and making and negotiating an offer for settlement.
You can also download our Professionals “Pathway to Buying Your Home” booklet, which includes more in-depth information on buying. Alternatively you can get a free copy from our office.
How to Organise Your Finances
Few people can afford to buy a home without borrowing money. What’s more, there’s no point looking seriously for a home until you know just how much you can afford to borrow. Once you know how much you have to spend, stick to your limit and always be realistic. There’s no point having a beautiful home if you can’t afford to eat.
An important thing to remember is that the price you pay for your home is not the only cost involved. Some additional extras you may need to take into consideration are:
• Legal fees
• Building and pest reports
• Stamp duty if applicable
• Mortgage costs
• Property valuation and insurance
• Moving costs
Most people will need to borrow money to purchase their homes. You could go directly to a financial institute such as a bank or building society. They will most likely provide you with one of their home loan options. For some people this may not necessarily be the best option. Given the number of home loan products on the market it may be worth talking with a mortgage broker who is registered with the Mortgage and Finance Association of Australia. They are independent, and specialise in finding the most appropriate home loan for you.
Making an Application
When making an application, it is likely the person assessing it won’t know you in a personal capacity and your application will be one of many they’re reviewing that day. You will be assessed solely on the strength of your application and your ability to meet your home loan commitments, both new and in the future.
You will be asked a lot of questions, some of which you may not have thought of before, so it’s important to prepare for this beforehand to ensure you give yourself the best chance of having your application approved.
Some common reasons why applications are rejected are:
• Applicants underestimate the value of their possessions
• Applicants do not include all their assets
• Applicants do not submit enough documentation to substantiate income
• Applicants are over-committed with repayments, eg credit cards and car loans
• Applicants have a poor history of saving
Understanding the Market
The property market is continually fluctuating, so it’s helpful to know what sort of market is prevailing when you’re looking to buy. Knowing this information will give you an indication of what sort of properties are being sold, how quickly and for how much. Each type of market has its own set of characteristics.
The number of properties on the market are great than the number of buyers. The properties usually take longer to sell. Prices are stable or sometimes fall and buyers will often dictate the selling price.
The number of buyers exceeds the number of properties available for sale. Properties will generally sell faster and prices will rise. Seller’s will often receive more than one offer for purchase and will gain prices closer to or over the listed price.
The number of properties for sale is roughly equal to the number of buyers. Sellers will consider reasonable offers and prices are generally stable. A good number of prospective buyers will view the property and it will sell within a reasonable timeframe.
It is also important to take in season factors when looking to buy or sell. There are generally fewer properties for sale during the winter months. Traditionally, spring is the time of year when more people tend to list their property for sale. In saying this, personal circumstances is one of the most important factors and homes are bought and sold throughout the year, so don’t let the season stop you from looking.
Starting your Property Search
You wouldn’t search for a new car without knowing what you wanted. So it’s fair to say, the same applies when looking to buy a property. The first thing you need to do is consider what it is you’re looking for, including plans for the future. Some considerations may be:
• Are you planning a family?
• Do you intend to have pets?
• Do you like to entertain or want a swimming pool?
• Price range
• Type of property (eg town house, apartment, house, acreage)
• Proximity to amenities such as schools, shops, public transport etc
• Property size
• Number of bedrooms
• Garage and storage
It is important to know what you’re looking for, but remember that if you’re too particular it may be more challenging to find the right home for you.
Prioritise your list into needs and wants, and make sure you do your homework. There are hundreds of properties for sale each week in Wagga Wagga. If there’s an area you’d like to live in, take the time to inspect a few homes to give yourself a better understanding of the market value for the properties and area you’re looking at.
To broaden your search, drive through an area and surrounding suburbs, refer to newspapers, weekend papers and internet to draw up a shortlist of properties that best meet your expectations on price, location and features.