Table of content
Table of content

Purchasing a property is an inspiring but serious commitment, so it’s crucial to ensure you are entirely prepared. It takes a lot of discipline and determination to save for a house deposit, so don’t feel deflated if it takes longer than you initially expected. Getting your finances sorted is the first step; you must identify your budget to determine how much you can save for the deposit.

The next step when buying a home is saving up for the deposit unless you have been given the funds or are looking at a loan set up such as a family pledge. The standard deposit usually is 20% of the total purchase price, although there are many benefits to saving over 20%. The higher the deposit, the lower your mortgage repayments will be.

If you have trouble saving for a deposit, you can take many different steps. Talk with your financial institute to see how they can help you achieve your savings goals, as they may be able to help you with partial access to your account. Sometimes, they can take processes, like putting a block on your account, so you no longer have access to transferring funds out of the account on online banking. Having only access when you enter a branch and sign may deter you from taking money out of your savings account. Alternatively, you could put a two to sign block on your account, where you and a second person would have to attend a branch and physically sign to make withdrawals.

Below are questions to ask yourself before purchasing a property and a checklist.

Do you know what you want to buy?

Reflect on your goals and what property aligns with those goals. Do you plan to grow a family? Are you happy to renovate an older home? Get clear on your goals, and this will help narrow down your property search, saving you time.

What are your absolute must-haves and nice-to-haves?

Make a list of things you MUST have – those you can’t live without. These include the property size, number of bedrooms and bathrooms, nearby schools and transport. Nice-to-haves are things you could do without for now, like the fittings, outdoor area and pool.

What is your price range?

If you have received a pre-approval for $600,000, don’t bother falling in love with properties advertised at $800,000. If the suburbs you are looking in are outside your price range, it’s essential to keep an open mind.

Have you done enough research?

Never make hasty decisions when purchasing a home. It’s vital to speak to experts in the field and listen for advice. There are plenty of free resources online, or you can talk to real estate agents, attend property inspections and explore what’s currently on offer. Always remember to pace yourself; the research phase could take months.

Below is a checklist when purchasing a property:

  • Calculate your budget
  • Complete a personal financial check and understand your goals
  • Organize a pre-approval
  • Decide on a preferred location/suburb
  • Determine the features you want in a property, like the number of bedrooms
  • Look at recently sold properties in the area on to find out how much they sold for
  • Learn the differences between a private sale and an auction and decide if you would like the help of expert assistance like an estate agent, conveyancer or buyers advocate.
  • Establish if the property requires a building inspection
  • If purchasing a home at an auction, agree with the vendor on conditions in the contract
  • Have your conveyancer or legal practitioner check the section 32 and the contract of sale
  • Understand the cooling-off period
  • Organize your deposit, so it’s ready to go when required
  • Check all items at the property are in good working condition unless stated otherwise in the contract of sale
  • Checked any items listed on the final inspection

How can a broker or a buyer agent save your money in a transaction?

A broker can help you save money purchasing a home in more than one way. Below are five ways a broker can save you money throughout your relationship.

  • Finding you low-interest rates
    Securing a low-interest rate can save you thousands over the life of your loan.
  • Tailoring finance to you
    Adding helpful loan features to suit your budget and goals, saving you money in the long term.
  • Managing the entire process for you
    Your broker can save you hundreds of hours by managing the whole process, which saves you money.
  • Helping you negotiate
    With the substantial knowledge and experience brokers have, they can guide you when putting an offer in to purchase a property, which can sometimes save thousands.
  • Research
    Brokers can research the market, suburbs, and properties to ensure you aren’t wasting time and money searching for a property.

What you need to know about buying a second home

Expanding your property portfolio is a massive achievement, but it’s essential to ensure it’s the right move for you and isn’t going to set you back.

  • Firstly, you can explore this option by revisiting your expenses and income and working out if you have available equity.
  • Secondly, it’s time to work out how you will pay the deposit, as 20% of the purchase price will be required. The most common option is accessing equity from your current mortgage.
  • Lastly, it’s time to decide whether your second property will be owner-occupied or investment.

Will you be living in the property or leasing it out?