For most people, buying a house is one of the biggest and most expensive decisions you
could ever make. So, naturally, it’s important that you choose a property that will suit your
needs, lifestyle and bank account.
While this process can be overwhelming, it certainly doesn’t have to be. Here are a few
important factors you should consider before you buy your next home.
Is it a stepping stone or your forever home?
Before you start shopping around for the perfect property, it’s important to think carefully
about what it is you’re shopping for. If you’re purchasing for investment purposes, you’ll
want to make sure that your money is going towards a property that will entice renters and
increase in value over time. In large part, it’s doing this research and considering the
different amenities, locations and property sizes that will get you a great return.
In comparison, if you’re searching for the home you’ll live in for the rest of your life, you can
focus more on your personal wants and needs. While purchasing a property that is 15
minutes away from the nearest supermarket might not be a great investment strategy, it
might be perfect for your dream of living in a more remote area. This is why thinking about
the purpose of the property is a hugely important part of the process.
Are there any underlying issues?
When you find what seems like the perfect property, it’s easy to get carried away in the
excitement of the process. But, before you make an offer and start planning where your
furniture will go, it’s vital that you organise for all necessary inspections. Pre-purchase and
pest inspections are necessary to ensure that you don’t run into any expensive and stressful
issues once you’ve moved in.
Depending on the size and location of the property, these inspections can generally cost
anywhere between $500–$1000. Not only can they provide you peace of mind by checking
for underlying issues, they can also make sure any problems that are uncovered can be used
to help you negotiate a lower purchase price with the vendor.
What additional costs can you expect?
When it comes to buying a property, there are often a range of additional expenses an
owner will incur on top of their deposit and monthly mortgage. At a minimum, the
necessary added costs of purchasing a home include stamp duty, legal and conveyancing
fees, mortgage registration costs, home insurance and transfer fees. When all added up, it’s
not uncommon for this to cost between $10,000–$30,000.
On top of this, it’s important to consider any costs that are uniquely associated to your
home, such as immediate renovations.
While every situation is different, it’s important to consider these costs to avoid financial
hardship down the line.