Australia’s housing market is predicted to rebound strongly in 2022, with prices tipping to rise by up to 7 percent nationally. If you’re considering buying a new house this year, you should do your research correctly.
For instance, you’ll need to save for a decent deposit, get your finances to buy a new house, and find the perfect property.
You should also be aware of the potential risks involved in buying property, such as negative equity and interest rates.
6 Things To Know Before Buying a New House
#1. Get your finances in order
Before you even start looking at properties, it’s essential to get your finances in order. This means savings a deposit, getting pre-approved for a loan, and having a realistic idea of what you can afford. It’s also a good idea to factor in additional costs such as stamp duty, legal fees, and moving expenses.
You’ll generally need to save at least 5% of the purchase price when it comes to deposits. However, if you’re a first home buyer, you may be able to access government grants or loans which can help you with your deposit.
#2. Negative equity
One of the risks of buying a property is that it could end up being worth less than what you paid. This is known as negative equity, and it can happen if prices in the market fall or if you have to sell your property before it has increased in value.
If you’re worried about negative equity, you can look for undervalued properties or in a market that is predicted to grow. You should also consider taking out mortgage insurance, which will cover you if the value of your property falls below the amount you owe on your loan.
#3. Talk to agents and lenders
If you’re serious about buying a property, it’s a good idea to start talking to agents and lenders as soon as possible. This will give you a better understanding of the market and what you can expect to pay for a property. It’s also an excellent way to get an idea of what type of loan would suit you best.
For several reasons, consulting an expert buyers agent in Sydney would be clever if you’re buying a house in Sydney. Firstly, they will have access to off-market properties that no one knows about. Secondly, an experienced agent will learn how to negotiate on your behalf to save you money properly.
#4. Consider your needs
When looking at properties, it’s essential to consider your needs. This includes the size of the property, the number of bedrooms and bathrooms, and the location.
It would be best if you also thought about whether you need a detached house or an apartment and whether you want a backyard or off-street parking.
#5. Be flexible
It’s also important to be flexible when you’re buying a property. This means being open to different properties, locations, and price ranges. You may miss out on a great property if you’re too rigid in your requirements.
There is no perfect property, so it’s essential to be willing to compromise.
#6. Get a building and pest inspection
Before you buy a property, it’s essential to get a building and pest inspection. This will help to identify any structural problems or pests that could be present on the property.
It’s also a good idea to have a solicitor check over the contract of sale before you sign it. This will ensure that there are no problems with the contract and that you understand all of the terms and conditions.
If you’re thinking of buying a property in 2022, it’s essential to do your research and be aware of the risks involved.
As long as you are careful and aware of your finances and needs, you’ll be on the right way to owning a home by the end of the year!
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