Key questions home buyers should ask themselves to find their property

Alex Soncini

EvEry home buyer is unique and has different priorities when it comes to finding their dream home. But it can be near impossible to find a property that ticks all your boxes, and it’s also easy to get distracted by a new or renovated home, incredible views, closeness to your favourite place, beach or cafe.

So, how can buyer stay focused on the core elements of a property and neighbourhood that can’t be easily changed but will have an enduring impact on the lifestyle and finances after you move in?

1. What mortgage repayments can I comfortably afford?

Most often everyone wants a more expensive property than their budget allows, regardless of whether they have $600,000 or $6 million to spend.

To avoid budget blow-out, buyers need to determine what their maximum budget is and what their preferred budget is. One needs to review and know what resources are available to them if they were to lose their job or something else happened that affected their ability to earn an income.

Calculating your borrowing power is an important part of applying for a home loan that can be as simple as using an online borrowing power calculator. Lenders typically determine borrowing power by considering factors such as the size of your deposit, your income and any ongoing financial commitments.

Everybody loves to dream big but try to stay within your capabilities. Knowing the amount of money you have and expect gives you a clearer perspective of the process before you start looking at homes. It’s up to you to figure out what are your goals and prioritise.

2. Do I want a house, a townhouse or an apartment?

Buyers can be adamant about their preference for dwelling-type and with Australia running low on housing, you may have to compromise between dwelling type and other aspects of your life.

Your strategies will depend on your choice: do you want an established home, or do you want to build/ renovate one to your taste?

An established home is more likely to have social amenities surrounding it. These are parks, churches, shops, transport, and even neighbours. So, if it is social entertainment you want, you’ve got it. On the other hand, you can like the environment but not the home, so you need to renovate. Check out the feasibility of renovation before getting knee-deep.

Many buyers have a mix of prerequisites, for example a big block for their kids to play on and want to be within walking distance of a train station. Some buyers want an inner-city apartment to be close to bars and restaurants.

One major item to consider whether the property you’re buying is a short or long-term strategy. There will be life changing situations as for instance, if you’re a young couple looking at apartments and you don’t want to move once you have children, you’ll need to think beyond the requirements of two working adults and size.

A lot of buyers will find it difficult to fast-forward into the future.

3. How do I spend my free time?

If you spend most of your free time curled up on the couch with a book, that couch can be in a home located almost anywhere. But if you’re a gym junkie, a foodie or a parent of active young kids, you’ll probably be looking for nearby amenities to make your weekends more relaxing.

The trick is to figure out where you spend most of your free time. Is it at the park? The local cafe? The gym or aquatic centre? Exploring bush trails? Playing golf? Visiting art galleries and museums? Will the kids need soccer or netball clubs, karate or dance classes?

Some of us need space for hobbies at home; others make good use of local facilities. Make a list of your must-haves and use it to narrow down your preferred location.

4. Do I need to be close to schools, work or public transport?

A short commute to school or work comes down to two main factors: access to public transport and the distance you live from school and work hubs. Access to public transport tends to be a priority for many buyers no matter if they are an owner occupier or investor.

Travelling to work by each day can be very time consuming and no one wants to be in a car for an hour each way. Many want convenience and everything at their doorstep to enjoy living and lifestyle.

If you’ve got school-aged kids, living close to your will limit your options as you review the local school catchment areas and the boundaries for your property search.

5. Do I need to be close to my network of family and friends?

If you’re not hunting for a home close to friends and family, as your mum helps with looking after the children, or you look after your elderly parents. There are plenty of reasons we choose to live close to our family and friends.

The more distant and disconnected you are from your family and friends will impact your assessments on where you live from being in a country town to living in the city.

6. Is convenience the key?

It’s hard to imaging living without any convenience and the affect on your daily life.

Who does not want to be close to work, school, family, parks, beaches or public transport? We move towards what’s most convenient most often.

In many cases people know what they want but have difficulty prioritising their needs. This can cause stress in deciding the qualities for your lifestyle and change your perceptions of what you want versus what you need.

7. Seek advice

From upfront buying costs to taxes, mortgage applications, interest rates and settlement requirements, there’s a lot of information to review and appreciate before making any big decisions.

Speaking with a mortgage broker can help you understand the buying process, get your finances in order and find the right home loan for your circumstances, contact Alex today on 0419 600 177 or email to alex.soncini@wealthwiz.com.au.

Disclaimer: The data, information and commentary provided in this publication is of a general nature and opinions expressed in this publication are those of the relevant contributors and should not be construed as specific advice or relied upon in lieu of appropriate professional fax or financial advice. The information in the article is believed to be reliable at the time of distribution, but neither WealthWiz nor its accredited brokers warrant its completeness or accuracy. For information about whether a loan may be suitable for you, call us on 0419 600 177.

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