Sunday, June 29, 2014

First Time Home Buyers Common Mistakes

Purchasing your first home is an exciting as well as a daunting task. There are hundreds of artifacts demanding your attention just as you are about to take the plunge to purchase your first home in Australia, and simultaneously you are about to make the biggest transaction of your life. Being ill prepared at such an important juncture can spoil the quintessential balance of your life, disrupting future possibilities and gains. Considering the significance of this step, we here try to bring limelight over some common mistakes and pitfalls of the buying process.

  1. Know about mortgage: - Simply researching the bank’s website and learning what you can borrow isn’t usually enough. There is a huge difference between what websites indicate and what you can actually receive. Your foremost step should be purchasing and analyzing your credit report. The Credit report is an in-depth history of your financial status and stability and is one of the main factors which will determine your eligibility for a mortgage. Check your score well in advance so that you can work it up and increase your chances of receiving the maximum possible amount.

    Subsequently, your next steps should be obtaining a pre-approval. Having a pre-approval will help you plan your purchase in Australia effectively and altogether, it puts you in the best negotiating position along with the mental peace that comes with it.
  2. Utilize your 1st home buyer grants: - Australian government has initiated a program through which it aims at helping first home buyers making their first purchase smoothly and relish their Great Australian dream. Guidelines and grants may vary from state to state, however one can apply for several different types of housing schemes under the program.
  3. Need for Patience and Proper Researching: - Keeping patience is the key for making the best purchase. Out there, there is one home that belongs solely to you so wait for the right time and let the nature unlatch its store at its own pace. I highly advice you against making any fed up purchase. You need to understand that buying a home requires
  4. Persistent efforts and still there is no guarantee that you may succeed within a short period. To conclude, keep up your incessant efforts until you haven’t reached your goal.

    Eventually, don’t let the price tag rule your search. Consider your home as an asset, as they are similar to fixed deposits. So invest your money in Australia in right property, instead of cheap property. You will understand the value of your investment later when the prices increase and which won’t be the case with cheap purchase.
  5. Investigate thoroughly: - Before entering into any contract with any seller in Australia do as exhaustive investigations as possible. If you personally are not capable, hire an expert for help. Once you have signed the contract you purchase the entire defects along with the home, additionally these defects can upset your finances. Ensure that every appliance is in working condition, and if possible engage a pest inspector along your side.

Furthermore, don’t forget to read your contract at least once. Sign the documents only if you are satisfied with the house and clauses of the seller. Ensure that you are getting an adequate number of right protection clauses inserted in the contract of sale. There are several other issues to consider but, hopefully, these guidelines will help you avoid some of the common mistakes as you endeavor towards your first home in Australia.

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