These are questions we think you may want to ask before purchasing a property
Apart from knowing what area you want to live in and what sort of property you want, whether it be a house, apartment or townhouse etc., we also believe that you should have your finances in order so there are no disappointments along the way.
We think the following questions need to be answered so you can comfortably negotiate the purchase of your dream property.
- How much can I afford each month in repayments?
- How much deposit do I need?
- How much money will the bank lend?
- What features do I need in a home loan?
- What is the best way to structure my mortgage?
- What are the associated costs when I purchase a property in Australia?
- Will I have enough money left over each month to enjoy my life?
- What percentage of my monthly income is going to go towards the monthly repayments?
We often meet people who go through the process of hunting for a property every weekend for months at a time. Eventually locating their dream home, they find they don’t have the requisite deposit; enough income to borrow what is needed, or have forgotten or unaware of the associated fees, e.g. Stamp Duty and Land Transfer fees.
How much can you afford? What the lenders think you can afford and what you can actually afford can often be worlds apart. It is our opinion that you need to clearly define what you can comfortably afford each month.
We also believe you should then allow for inflation and the possibilities of interest rates going up. As interest rates don’t move just with inflation, they can move upwards rather quickly and if you have not factored that into your calculations you could quickly find yourself in a world of financial stress.
The types of property you’re purchasing or the location can sometimes come with restrictions as to how much you can borrow against it, e.g. apartments below 50 sqm, properties located in regional areas or right in the heart of the city.
We recommend, before signing a Contract of Sale, that you find out if there are any restrictions on the type of property you are looking for, which could result in you being committed to a property you can’t purchase.
A quick call to Vanquish would eliminate any nasty surprises and save you wasting your time and, potentially, money.
We will carefully assess your current financial situation, listen to your goals and objectives, determine with you what is affordable and manageable and outline the associated costs of purchasing property in Australia.
We will then discuss your options and make suggestions regarding what we think is going to be, from a financial perspective, the most appropriate strategy for you.
