As result of latest stamp duty savings, I believe there will be more first home-buyers will be able to seek for their first home to purchase. Let’s refresh about the basics of buying a first home. Knowing what a property is worth is central to avoiding paying too much for it.
Set a benchmark
Comparing nearby properties that have sold recently is the best way to assess an acceptable price for the property you are looking at and provides a valuable bargaining tool when you are negotiating with a seller or agent. Make sure the properties are comparable, (Compare apples with apples) with a similar land size and number of bedrooms, for example, so you aren’t measuring apples against oranges.
If you can find one or two similar properties then you can be sure of what the property is worth. At Mel Finance services, we are happy to provide a free property profile report for you. We use the largest property data provider, which is Core logic RP- Data.
You must avoid risking your self-offering a price for a home with knowing how much even you can borrow. In a busy month I get atleast 2-3 new enquiries clients have an executed contract of sale, yet they have not gone through simple first steps.
Keep in mind current market conditions
The property market is always changing, so doing this research once and sitting on it for a few months will offer little help. Going to open homes and auctions regularly will give you insight into the current state of the market and how much certain properties are going for.
Expand your search
Number one tip is to look at properties in the suburb next to the one that you want I find that first-home buyers in particular usually end up buying in the more affordable suburb next door to the one that they first wanted to buy in.
Don’t exceed your financial capacity
Even if a lender approves you for a particular loan amount, it doesn’t mean you have to accept it – a higher loan amount means higher interest charges over the life of the loan, increasing the total cost of the property purchase, so only ever commit to a loan that you can afford alongside your current income and real expenditure. When calculating figures for the price of a home, ensure you also budget for maintenance and repair costs, as well as any other expertise you may require in the purchasing process. Simply, you should be able to live your current life with out sacrificing a lot.
Bring in the experts
At Mel Finance we always advice our clients to sort your home loan first. As Home loan broker, I want to ensure my clients have gone through the sourcing the finance before they put an offer in.
This will speed up the home loan process as the most of the heavy lifting been done by Mel finance services. Also usually finance due with 14days when you sign the contract of sale with the real estate agent.
If the finance has been sorted, with in 14 days valuation report can be arranged and lender will issue the formal approval, which gives you peace of mind assuring that your home loan is formally approved.
So this is how at Mel finance we minimise the unwanted stress for our clients. Navigating through the proper stress free process. I’m not your average Mortgage Broker in Melbourne who just only referring home loan rates.
Having Mel finance as your Mortgage Broker Melbourne is key to avoid overpaying for finance. We will search out the best loan for you and make sure it is one that you can afford and suits your current financial situation.