HAVE you decided that renting is no longer your thing?
Rising rents and a lack of available rental properties is encouraging many Australians to give serious merit to home ownership.
Many first homebuyers find that paying rent while attempting to save enough money for a home loan deposit is challenging.
However, the cost comparison between rent and loan repayments within some areas is encouraging for potential buyers.
Achieving property ownership does require careful thought and consideration of a range of aspects.
Before jumping in head first, borrowers should keep in mind that there is a range of costs, other than the purchase price, associated with home ownership.
Buyers need to budget for expenses such as loan application fees, stamp duty, solicitor fees, property insurance, land tax, strata fees, or council rates.
To get the ball rolling, a good idea is to apply for home loan pre-approval.
This provides you with a clear picture on the property price range suited to your circumstances.
The maximum amount you can borrow will vary from lender to lender, based on your income, financial commitments and the type of loan applied for.
Lenders will also take into consideration other aspects such as savings, assets, debts, credit history, employment history and stability residence.
So, it pays to shop around for a loan and lender suited to your needs and circumstances.
Some first homebuyers looking to enter the market sooner rather than later may consider purchasing property with others such as family or friends.
If you are considering this, be sure to seek legal and financial advice so each party is aware of their rights and responsibilities and consider putting in place a formal agreement.
Loan guarantors are another option for first homebuyers.
Having a guarantor may allow borrowers who have insufficient deposit funds but have the ability to make the required loan repayments to secure additional funds.
Another option is to lower your expectations the first time round and buy within an area that is not necessarily your ‘ideal’ location, until you can afford otherwise.
As long as a property has everything you need, and not necessarily everything you want, you will still be on the right track.
Remember, your first home is often the starting block for bigger and better things.
For more information phone Richard Windeyer on 1800 01 LOAN.
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