Real Estate: Tips for Buying a Home

It is interesting to see that Victoria is building brand new homes at a fast pace; at almost double the rate of New South Wales. This may be due to the seventy thousand jobs that have recently been created in Victoria. By 2037, it is predicted that Melbourne is set to become Australia’s largest city leaving Sydney far behind.Buying a home is never easy especially if you are not sure about what you want and where you want it. It is important that you first decide on where you would like to live and the size of the house you need. Then, of course, you will have to factor in what you can afford. The rules of purchasing a property vary from state to state depending on whether the property is sold through an auction or by private agreement.Once you have decided on the property you wish to purchase, make an offer. Always offer a price that is lower than the asking price. Convey your serious intent to buy by paying an initial deposit of maybe 10% of the total price. You can then draw up legal agreements and insure the property. It will take you anywhere between a month and 90 days to finalize the sale. In case you change your mind about the property, the seller is legally allowed to retain 0.25% of your deposit and refund the rest.Getting a home loan is easy as long as you have all the required documents. It is definitely easier for a salaried couple to get a housing loan. Self-employed persons are not considered as credit worthy as salaried people.There are several types of home loans with fixed and variable rates of interest.1. Basic Loan2. Equity Line Credit Loan3. No Deposit Loan4. Fixed Rate Loan5. Standard Variable Rate Loan6. Non conforming Loan7. Home Loan PackageIn extremely rare cases, you might be able to swing a 100% loan and even get the financial institution to pay the stamp duty and other expenses. This is called the No Deposit Loan. Self-employed who may not meet the financial institution’s credit requirements, or those who have a bad credit background, or those who are casual workers with no steady job, or fresh immigrants with no history of loan repayment, can apply for the Non Conforming Loan.There are several questions you need to ask before you buy a property:• Why is the property on the market?• Has the property been inspected for structural damage, etc?• What are the items that come with the property?• What is the market value of the property and how does it compare with the asking price?• Is your agent also representing the buyer?• When will you get possession of the property?Buying property that is being sold by auction has its good points; you could become the legal owner within a month. But, you need to be financially sound before bidding. If there is any delay in settlement, you could face legal action.This is the best time to buy property in Australia as the property market is set for an upward swing and property investments promise high profits through rental income and higher resale value.