e v i s n e h e r p m A Co g n i y u B e s u o H t s i l k c e Ch
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FINANCE CHECK
The first step in buying a house is to save up the deposit. This is normally 10% of the total purchase price, but there are advantages in making your deposit a higher percentage: you’ll have lower mortgage repayments or may be able to afford a better property. The home loan business in Australia is very competitive, so it pays to shop around. Making the right home loan choice can save you thousands of dollars over the life of your loan, so you need to get it right. Each home loan has its own sets of terms and conditions, so ask enough questions to fully understand the details of your mortgage. Is there a redraw facility? Can you pay out your loan early by making extra payments? It might take 2-5 years to save up a deposit to buy your house, so starting as early as possible will put you in a better position. Ideally, you’ll also start researching property prices and lenders at least a year before you buy. Can you pay fortnightly, monthly or weekly? Will you need mortgage insurance? When in doubt, find out.
LOCATION CHECK The neighbourhood you choose to live in will make a big different to how happy you are in your home. What are the local property values like? What about the burglary rates in that part of town? How close are the nearest shops, hospitals, restaurants, train stations or bus stops? Have you checked with the local council about any big developments planned for the area? Even though a house looks like it’s on ‘a quiet street’, it doesn’t hurt to check out what kind of neighbours you might be letting yourself in for. Do they have loud dogs, muffler-deficient motorcycles or teenagers with a tendency for throwing parties every Saturday night? Perhaps the house is surprisingly cheap because a massive 5-story apartment block is due for construction just behind your back yard!
SCHOOL FOR THE KIDS If you have children, distance to decent schools is also an important consideration. How close are they and how will your children get there and back? Is public transport readily available? Is there a train station or bus stop nearby? If children are walking to and from school, is the route safe? If they’re getting to school by bicycle, are there bike paths? It’s easy enough to get onto a school’s website to check them out in advance. If your child is involved in a particular sport, musical discipline or other activity, will the new school have programs in place to support this? If you’re a parent looking to purchase a house in a new area, it’s worth doing some research into available schools within a reasonable distance of your new home.