Things to Consider when Buying a House

Things to Consider when Buying a House

Introduction

Buying a house is complicated.

How do you know the purchase price is fair? Will you be able to get a mortgage, and what interest rate will you pay? Is there any cooling off period in Western Australia?

Below, we explore the main aspects that affect your home purchasing decision.

Things to Consider When Buying a House

How Much Can You Afford to Spend?

It’s easy to get caught up in the excitement. The instalment might be higher than you’d like, for example, but you reason that you are happy to make lifestyle adjustments.

Your mortgage instalment is only part of the expense, though. Extras include monthly levies, insurance, maintenance, and property taxes. It adds up quickly and can make your dream home a financial burden.

Create a careful budget around what you can afford for three to six months for a realistic idea of life after buying a house. Be sure to factor in insurance and ancillary expenses, too.

 

Research the Area

Invest in an area where property prices are increasing. You also want somewhere that you can settle down. A two-bedroom home might be perfect for now, but what about when your family expands?

Check for amenities in the area.

Are there shops within walking distance? Is it close to a bus route? What schools are nearby?

Have the Property Inspected Professionally

Don’t listen only to family and friends. Check the property carefully for damage.

Is there asbestos hiding in that ceiling? Is there termite damage? Building inspections are the only way to know for sure.

You’ll have to pay for it, but it could save you making an expensive mistake. 

Go to a Mortgage Broker

A mortgage broker makes sense—they’re professionals and understand what the banks want from applicants. They’re also in the best position to shop around for a deal. Save yourself time and effort–fill in one application and let the broker at FinanceCorp do the rest.