Handy Tips on Buying a Home or Unit

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A General Guide for Prospective Homebuyers

So you have decided to buy your own home. Congratulations!

But what sort of home do you need and what type of lifestyle do you want your home to provide? It all sounds simple enough, and it is. However there are many things to keep in mind when buying your home. To help you decide we have created this handy checklist. It will assist you to make the right decisions and give you some useful ideas.

REMEMBER: Knowledge equals money in the Bank!
Take your time to do your homework as it can save you thousands of dollars in the long run.

Turning your dream into a pleasant reality

Many of us have an idea as to the type of home we want. However, once you start looking and end up seeing endless homes and/or designs you can end up a bit confused, so here is a helpful tip to keep you on track. Make up a scrapbook of images of all the things you like about a home. Things you like that you find in new home magazines or advertisements or in friends’ homes. It does not have to be exactly what you may end up with; it’s just to create a “feeling of what you are looking for” - your own personal reference book!

Decisions

When you buy your home you have to decide such things as:

• The suburb you wish to live in
• Do you want a large or small garden
• Whether you will be close to a school, shops, sporting facilities, and public transport
• Whether you need a larger or smaller home - for an expanding or contracting family
• Whether you want a single or double story or split-level home
• Do you need to accommodate future physical limitations - e.g. stairs, bathroom facilities, etc
• Type of Material used in constructing the home - e.g. Brick, Timber, Fibro, other
• Environmental factors - heating/cooling, water storage, aspect, etc

You will also need to decide if you want to:

• Buy an existing house or unit
• Buy a block of land and build a new home
• Buy a house and land package

Finance

You need to know:

• Are you eligible for the First Homeowners Grant?
• How much deposit you have to pay
• How much can you afford to borrow
• What are the additional costs associated with buying/building will you need to pay - e.g. Stamp duties, Application fees, Mortgage Insurance, Building and/or contents insurance, Legals, Rates, Valuation fees, etc
• How your loan expenses will fit in with your other expenses -e.g. existing personal loans, credit cards/store cards, maintenance, child care fees, school fees, etc
• What strategy will you employ to reduce your mortgage quickly to save paying unnecessary interest to the bank?

YouSelect Home Loans can assist you in this area.
Discuss your personal financial situation with us as early as possible in the home-buying process - possibly even arranging a pre-approval. You can start this by clicking on the YouSelect Home Loans logo below to contact us.

Selecting your home

• Look at several homes before you settle on the one you want
• Resist the pressure from sales staff who encourage you to sign quickly
• Do not be rushed into decisions about which home or which builder

Buying your home

• Discuss any offer you make on an established home with your Real Estate Agent
• Negotiate, you do not need to accept the asking price
• Check out similar homes in the area for their value to ensure you are paying a fair price
• Make sure any conditions in your offer are clear
• Ensure that any offer made is “subject to finance”
• You only have to place a small refundable security deposit on your offer to purchase a home, as the main legal transaction takes place at settlement

Building your home

Many builders can help you through the process of selecting the right home. Deal only with reputable registered builders.

• Do not sign anything until you have read the small print and fully understand the document - or have your solicitor look at it for you
• Work out your total budget. As well as the cost of the land and building include such things as valuation cost, legal fees, stamp duty, rates and taxes, site works and moving expenses.
• Keep careful records of all contracts, plans, payments and other documents
• Discuss the ongoing progress regularly with someone at the builders office
• Check on-site work regularly and talk to the builders’ supervisor on-site if you can.

Moving into your new home

There are many things to arrange prior to and on the day of moving. You will save yourself a lot of time and stress if you plan ahead. It’s best to start planning as soon as you know the date of your move.

Make a list of all those people and organisations that you need to advise of your new address, arrange to get your mail forwarded, organise the removalist or enlist the assistance of family and friends. The earlier this is done the smoother your move will be.