Part 1 – Budget Considerations

When you are looking to buy a home for your family, budget is a crucial concern. It is important to have a clear idea in mind of how much money you have set aside to fund your new home.

Your home is your primary asset and therefore your largest investment.

Being wise about your money from the start and understanding what you can afford helps you avoid becoming overwhelmed when it comes to paying the upfront costs required to have your home registered in your name and the monthly mortgage payments going forward.

 

Consider the following considerations and costs when looking for a new family home:

 

A.   The Purchase Price

The purchase price is the price you see on the advert for the home that you would like. A clear idea of your financial status is necessary before making a decision on your property budget. Ask yourself these questions:

       1.   Are you buying the right home at the right price?

       2.   Have you seen the different prices of houses or apartments in different residential areas?

       3.   Have you visited an experienced estate agent to get advice on where you should be buying?

       4.   What are your circumstances? Relationship status? Do you have children? Are you looking for a home in proximity to work and schools? Close to your place of worship?

             How many people do you have in your family that will be living with you?

 

B.   Additional Costs To Consider

Getting pre-approved for a home loan is an important first step in the home buying process, but it is not the only consideration.

Searching for a new home is fun and exciting. However, be mindful in your purchasing decision.  Be aware that you will also need to pay for the costs (including tax) to have your name recorded as the owner of your new home. First-time buyers have to figure out all the costs associated with homeownership both upfront and over time.  This will determine the home they can afford. After all, the monthly home mortgage repayments isn't the only recurring expense. There is household and home insurance, maintenance costs, utilities and repairs, not to mention those unexpected repairs that catch homeowners off guard. Prospective homeowners also have to consider tax implications.

 

In our next property instalment find out about mortgage bond and purchasing options.

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Need expert advice? Contact one of our property and conveyancing experts.