PREPARE TO PURCHASE
How do you prepare yourself for this journey?
- Be financially prepared
- Be aware
- Be patient
- Be flexible
- Be diligent
For each property transaction, you will need to be financially prepared; by that I mean get your finances in order before you choose a property. This means obtaining pre-approval from your financial lending institution. There is nothing more stressful than signing a contract and waiting for a bank to provide the approval. Be aware of the extra costs and include them in your budget.
Buying a house is exciting and life-changing. What's not quite as much fun is saving for the deposit. The government have come up with a scheme to help you save to get that deposit faster. Keep in mind, the more money you put down upfront, the less you'll have to borrow.
The First home super saver (FHSS) scheme was introduced by the Australian Government in the Federal Budget 2017–18 to reduce pressure on housing affordability. The FHSS scheme allows you to save money for your first home inside your superannuation fund. This will help first home buyers save faster with the concessional tax treatment of super. Go to the website to see if you are eligible.
Avoid unpleasant surprises such as:
- Mortgage Insurance
- Stamp Duty
- Legal Costs
- Holding costs
- Body Corporate
- Accounting Fees
- Ongoing costs; repairs
- Hire a quantity surveyor for depreciation and taxation requirements on investment properties
If you are expecting to cover the holding costs from a tax refund, then make sure that you can handle the month to month holding costs while you wait for your end of tax year pay day. Alternatively, talk to your accountant about a tax variation, which could help you with your monthly budget.
Be a long-term investor: