Finding a perfect home and buying it at reasonable price requires patience, careful planning and sound research. It is also a major decision in life because you don’t know whether everything will be convenient around you when you’ll settle in the house and whether the price of the property will go up in the future, ensuring a handsome return of investment for you.
Home buyers in Australia often take wrong decisions which cause them loss of money and low ROI. For example, the current housing market is overvalued. The true cost of the $4 trillion worth market is believed to be $3.6 trillion. Buying an expensive home may not be a good idea at this moment because few years down the line, the cost may climb down resulting the homeowner to incur a loss.
Australian home buyers need to follow some tips so they could save money while availing themselves a dream home.
Research and budgeting
Home buyers often make a mistake. They keep research and budgeting separate. The research should be inclusive and it should include budget estimation. While seeing a variety of properties, get a feel for the market and check if the properties fit with your budget. Sometimes we are really taken by a home but couldn’t arrange the money shortly. To avoid such a situation, take out 6 month pre approval so you could figure out how much money you can borrow.
Home buyers grants
There are many grants available for home buyers. One of them is the First Home Owner Grant Scheme or FHOG. It is a government-funded scheme that comes with non means tested payment of $7000. Non means tested means you’ll get the money irrespective of your income. The scheme was introduced in the year 2000 to alleviate the impacts of Goods and Services Tax on the housing industry. You can take help of a professional consultant to avail similar types of grants.
You need a hefty deposit for buying a home. Try to deliver 20% of the purchase amount from your savings. You also need to have a regular savings habit. It will not only help you suffice additional costs but also make it easier for you to get loan. To compare home loan schemes, ask your lender to give you the key facts on home loan schemes. Also, get information on repayments so you could know how much money you need to save.
Following the tips mentioned above will give you an edge in the super competitive housing industry. So follow them and grab yourself a great home buying deal.