The real estate market can be tricky to navigate at times. There are various factors to consider including, what type of property you are after, the suburb and your budget.
At some point in a renters’ life, the idea of purchasing your own home comes into play. The thought of essentially paying off another person’s mortgage your whole life is enough to push most people into looking at the property market. However, going from renter to homeowner isn’t as easy as it seems.
The main factor is the deposit. Without a deposit, your dreams of owning your own home can be seem like a far reach. However, there are some key things to consider that will make your transition into the housing market so much easier.
Some of these tips you can start today, others will take a little more planning. Try and implement these steps into your own life to becoming one step closer to owning your own home.
Do your research
Doing your research is crucial. There’s more to it than just choosing a nice area you would like to live. Depending on your lifestyle and future plans, factors to consider researching into include schools in the area and access to healthcare facilities.
However, it’s not just the services in your area you need to consider. Another area of research is factors around what will impact your property’s value. Questions to ask yourself include; what will your suburb look like in 10 years? Will your view be impacted by future building projects? What are the current legislation regarding parking? All of these factors will impact the value of your area and in turn your property.
Areas you can turn to when doing your research may include the local council in your area, online property forums and also people in the local area. Don’t be afraid to talk to people in the community and get their thoughts.
Share in an investment property
Buying an investment property is one way to own your own place. Purchasing your own investment property also involves doing your research first. This isn’t a home you will intend to live in forever, and therefore its resale value is crucial.
When looking at an investment property, it’s not about where you would like to live or what type of home suits your lifestyle best. It’s about what type of property will be in high demand, and therefore will have less chance of being tenant free. It’s also about what property will increase the most in value.
Take a look at some up and coming suburbs that are getting an upgrade in infrastructure. This should tell you that it’s going to be a growing area. Also, look at the other properties in the area. For example, if apartments are crowding a particular suburb, then its best to opt for another type of property, such as a house or townhouse.
Also, with the investment properties, you don’t have to go into it alone. Many people share investments with family or good friends. This allows for more than 1 persons income to be assessed and to come up with the deposit, which makes it easier. Just make sure you have a legal document that outlines your obligations and rights between all parties involved.
Do the math
Unlike renting a property, there are more fees involved when it comes to be being a home owner. When you rent, there is only one payment you have to worry about, and that’s the monthly rent.
When it comes to being a home owner, there may be body corporate fees, rates and bank interest. All of these costs combined can add up to thousands of dollars per year.
It’s important to take all of this into account and do up a simple spreadsheet of your outgoings. Look at how much you will be paying yearly, as well as monthly. Also, remember there is a possibility that you may have to cover the rent if the tenant decides to leave in a hurry or you can’t seem to find someone to take over your property.
The prospect of owning your home can be exciting yet daunting at the same time. The first thing you should do is research. Visit different suburbs, research online or ask the local neighbours to get their insights. Also, think about whether an investment property may be right for you. You may also have a family member that could go into it with you. Last but not least, don’t forget to do the math. Make sure you can meet your repayments, as well as any yearly costs that go along with owning your own home.