The Top Things That You Need To Know Before Buying a Property In Australia

It is both an exciting and challenging time when it comes to buying your first property and many people all across Australia will get themselves onto the first rung of the property ladder. People buy properties because renting them doesn’t provide any value because at the end of any given year, you have paid out thousands in rental fees and you still don’t own the property. The owner holds onto it and you continue to pay rent until you decide that enough is enough and you start looking for your own property to buy.

If you are currently considering buying your own property then you should know that it is a bit of a minefield out there and you have to consider things like a non refundable deposit where you put down a significant amount of your lifetime savings to ensure that you get a particular property and then when things fall through for many reasons, you do not get your deposit back. This is a costly decision and so you must tread carefully before buying a property here in Australia. The following are just some of the top things that you need to know before committing yourself to such a thing.

• Get yourself preapproved – This will cut down the chances considerably of you having to pull out of the deal and not get your deposit back. By talking to your lender, you can get an idea of how much money they will lend you based on the job that you have and the paperwork that you provide. It isn’t a guarantee 100% that they will give you the money but it is as close as you’re going to get in this situation. It’s likely that you will get a preapproved letter but always remember that this is not the same as getting the loan itself.
• Don’t forget about the mortgage fees – When trying to figure out if you can own a property or not, you need to factor in the other fees that are applicable on top of the money that you are expected to pay every single month for the next 30 years of your life without fail. There are many different fees including the commission to the estate agent, the fee for application, the money you have to pay for a title search and the insurance fees as well. These all mount up into what could be a significant amount of money and so be aware of this before you sign on the dotted line and commit yourself wholeheartedly.

You need to start doing things now that will help to improve your credit score because the lower the credit score, the higher the interest rate that you will be charged. If you have any outstanding money owed on credit cards or any other thing in your life then get these paid off first before you make your initial application for a mortgage. You can then take advantage of lower interest rates and that’s great news.