9 Signs You’re Ready to Buy a Home
10th July 2024
Buying your own home remains the ‘Great Australian Dream’. However, knowing when it’s the right time to take the plunge and step onto the property ladder isn’t always clear-cut.
Whether it’s a two-bedroom unit in a leafy outer suburb, a studio apartment in the city, or a rustic acreage, there are plenty of options.
But how do you know if you’re ready to buy a house? Here are 9 key signs that could mean you are ready to take this important and exciting step.
- You’ve Got the Deposit
In today’s market, saving up for a deposit is a crucial first step. While some lenders require only a 5% deposit, aiming for 20% can help you avoid additional costs like Lender’s Mortgage Insurance (LMI). Currently, the New South Wales government offers grants for first homebuyers. Read our blog on the NSW First Home Owner (New Homes) Grant 2024 to learn more on how you can take advantage of this opportunity.
- You Have a Regular Income
Lenders need to know that you can afford mortgage repayments, this is best shown through secure employment. Being in your job for at least six months and having savings behind you is a good sign. If you are self-employed, showing an ABN for two years and providing personal and business tax returns is essential.
- You Know the Market
Understanding your finances is just the first step. Research the property market, current trends, and potential hotspots. Look into whether it’s a buyer’s or seller’s market and get local insights from real estate professionals. Areas like Byron Bay, Lismore, and Ballina have very distinct markets, so local knowledge is crucial.
- You Are Realistic About Options
It’s unlikely you’ll be able to afford your dream property right away. Prioritise your needs, be open to compromises, and understand that your dream home might need adjustments. Being realistic about your expectations can widen your range of suitable properties.
- You Understand This is a Commitment
Buying a home is a long-term commitment, with mortgages often spanning up to 30 years. Plan for the future and consider potential changes in interest rates and your financial situation. A useful test is to save as if you’re already paying off a mortgage for a few months to see how you manage the financial commitment.
- You Have an Emergency Fund
Beyond the deposit, it’s important to have an emergency fund to cover unexpected expenses like repairs and maintenance. This fund ensures you’re not financially strained by sudden costs such as a broken hot water system or a leaky roof.
- You’ve Researched the Area
Investigate property prices in your desired neighbourhood. Consider factors like potential value changes, flood zones, local amenities, and overall area development. Infrastructure projects, new schools, or shopping centres can significantly impact property values. This research can help in making an informed decision.
- You’re Ready for the Nitty-Gritty
Buying a home is a lengthy process that involves dealing with contracts and legalities. Every transaction is different, and we have extensive experience in handling complex property matters. Engage a competent conveyancer like Bangalow Conveyancing to help make this process smooth and hassle-free.
- You Know What You Want
There is no one-size-fits-all in real estate. Whether you prefer an apartment in the city or a house in the suburbs, knowing what you want is key. Trust your instincts and move forward when you find the perfect fit.
The Northern Rivers region is renowned for its unique blend of coastal living, lush hinterlands, and vibrant communities. Not only do we possess extensive knowledge of conveyancing in this region, but our expertise also extends to both Queensland and broader New South Wales. At Bangalow Conveyancing, we are well-equipped to assist you with all your property needs.
If you’re seeing these signs, it might just be the right time to contact Bangalow Conveyancing on (02) 6687 0548 to turn your dream into reality.
