As news comes in that interest rates for mortgages reach a new low of 2.25 percent, a record number of home buyers are looking to purchase a property in Australia with lenders reporting an increase of 150 percent in lending over the last three years alone.
Prices of real estate in Australia are going only one way – up, and with more new buyers than ever before, especially from overseas. Overseas investors are flocking to buy properties in Australia due to factors such as falling foreign exchange rates between the Australian Dollar and their home currencies according to Compare Forex Brokers. Comparatively speaking, interest rates in Australia are still higher than the majority of developed countries which is another reason for the foreign investment boom in Australia.
We take a look at the top tips for new buyers looking to establish themselves on the housing ladder down under.
Do your research – know where you want to buy.
Australia is a vast country, so big that you could place the entire of Australia over pretty much the entirety of Europe – just to give you some idea of how big this island is. So, when looking to buy a home, ensure that you have done your research and looked at all the possible cities and areas in which you could buy. Fancy a home in Sydney? Make sure you check out all the territories and neighbourhoods before finalising your buy. Buying a home is not something to be taken lightly, research is your first and arguably your most important step to getting on the real estate ladder in Australia.
Compare prices of real estate
Once you have your budget, if you have no wriggle room, you need to stick to your budget accordingly. Compare prices of different homes in your chosen area. No one ever buys the first property they ever lay their eyes on, so be savvy and compare prices and be prepared to haggle – you will be surprised at just how much cash you could save in the long run.
If purchasing with a mortgage, get the best loan
Not everyone is blessed with a run uncle or inheritance of millions to purchase anything in cash at their disposal. For most of us, buying a home will result in consulting banks and lenders to secure a loan to put towards your home. Statecustodians.com.au is the number one non-bank lender in Australia, the most awarded, and provide a full range of home solutions to Australians looking to purchase property.
Think about the future
Buying a home is not like getting a new car, or new phone that you can simply sell and change easily months later if things don’t work out. The old saying goes that buying a home is more of a commitment than a marriage – so be prepared for the long haul if you are looking to purchase a property with a view of making it your family home. Can you picture yourself in the same residence 10 years down the line? If the answer is no, you might want to look elsewhere.
Be prepared for bumps along the way
Purchasing a home is never an easy process, and almost certainly, never a smooth process every step of the way. Be prepared for hold ups, and be prepared for situations that you might not have necessarily pictured before. It is always good to go into a situation with every angle covered instead of leaving yourself exposed.
Of course, these are just some tips to help you a little bit along the way. Have you purchased a home in Australia recently? What are your tips for those looking to follow in your footsteps? We would love to hear your advice for new buyers and those looking to get on the ladder.