Sunshine Coast Hinterland Times

Climbing on to the property ladder

If you’re thinking about climbing onto the property ladder it can seem extremely daunting, so it can be easier to break the process down by asking yourself a few simple questions to help you on to that first rung.

1. What kind of property?

Do you need a family home, or are you a single, or a couple who want the low maintenance of an apartment?

2. How much?

Most advisors will tell you to budget about one third of your pre-tax income in loan repayments but I would urge caution, particularly in the current interest rate environment. The best way to work out what you can afford is to sit down and do an extremely detailed budget of your current expenses, keeping in mind that unless you fix your interest rate, your repayments may rise. But if you don’t have any savings, the first thing you will need to do is put in place a rigorous savings plan to help you build your deposit and also save for everything from legal fees to moving costs. Also, if you’re a first home buyer, you may be eligible for a government grant.

3. Who to borrow from?

There are a number of considerations to keep in mind while looking for your home loan. These include the interest rate, fees, as well as the service or relationship element. The trap many people fall in to is to base their decision solely on rate. While securing a competitive rate is important, it’s also vital that you compare fees, and service.

4. Buying the property!

Once you’ve found the property that you want to buy, and your building and pest inspections are all clear, it’s now time to do the deal.

Remember:

• It pays to negotiate
• Don’t be rushed or feel pressured
• Arrange for a solicitor or conveyancer to do title or body corporate searches, draw up the contract and exchange it with the seller
• Enjoy the process, it’s an exciting step and shouldn’t be too stressful
• Relax in the knowledge that you are making a great commitment to your future personal wealth!

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