Budgeting to buy a home

The great Australian dream can sometimes feel like a real uphill struggle when you are starting from zero. Saving for a deposit for your first home can be daunting to say the least with most lenders requiring a sizable deposit. But fear not, with some simple money saving techniques and choosing the right home loan from a reputable lender such as Mortgage Choice Bowral, you’ll be well on the way to purchasing your first home in the Southern Highlands.

For many people in the southern highlands and indeed the world, buying a home is the largest investment they will make during their lifetime and is also usually their biggest financial asset. The key to buying your first home is to devise an achievable household budget and stay on top of it. With the average Australian first home loan of around $350,000 and most lenders requiring a deposit of between 10% and 20%, you will need to save a fair amount of cash to start your home ownership journey. However, try not to focus on the end total as this can be a little demoralising, instead, start with smaller goals and work your way up from there to ensure you secure your Home Loans Mittagong application at the first attempt.

With so many options for first home buyers in the Southern Highlands at varying price brackets, securing the best finance with Home Loans Bowral is the first step. All reputable professional lenders will help and guide you in achieving your goals. A key part of having your loan request approved is having genuine banked savings stemming from your regular income stream. Gifts, family inheritance or tax refunds will help, however unless these are very sizeable indeed, lenders need to see that you are capable of saving your own money over a long period of time.

To accumulate a healthy savings account you may also need to reduce unessential expenses somewhat.  A few ideas could be to take your own lunch to work, cutting back on coffee you buy at cafes, walk or ride a bicycle to work rather than driving, have guests at home rather than going out on the town and look out for last minute deals on travel and hotels. However, don’t cut back on everything you enjoy, life is there for living after all, just be smart about expenses and you will be amazed at how quickly savings can add up.

Auction Techniques – How to keep calm and buy

So, you have secured your home loan and are ready to hit the auctions. But beware, real auctions unlike their TV counterparts, can be nerve racking, stressful and downright expensive if you don’t play your cards right and go in over your head. I’ve explained some of the best tips for would be buyers in this article so read on and make buying your dream home in the southern highlands as hassle free as possible.

The first step when buying a new home is to get your finances settled. There are many great home loans to be had out there, its just a matter of tracking down the perfect one for you. Home loans  can vary quite widely, so take the time to compare, set your budget and start saving for that all important deposit. Do your research on the property market, look for upcoming auctions that you might be interested in and compare the price estimate to recent sales in that area.

When you have decided to go for it and attend an auction, dress to impress! How other bidders perceive you is quite important – so make sure you look like you have the money to buy the house. It may sound vain, but consider borrowing a prestige car to park out the front of the property (if you own one, even better). Positive body language helps too, stay confident and stand near the front close to the auctioneer so you can get a clear picture of who you will be competing against. It can be a good tactical move to ask a question before the auction starts to makes other bidders wary. This could be something along the lines of “Has the DA gone through for next door yet?” or “Will the flight path changes effect this property?”

Stick to your budget! Whatever the size of your mortgage, do not bid above this amount. Its easy to get caught up in the emotion of an auction, especially when the auctioneer is doing his best to get a good price for the vendor. The key is to keep calm, cool and calculated with your bids, otherwise you may spend tens or hundreds of thousands of dollars above your limit. On the other hand, when bidding, don’t get into the battle of making low ball price increments. Making serious bids shows the others that you mean business and will scare away “tyre kickers”. Even low budget bidders can caught up in the heat of battle and increase their levels – which can in turn raise the overall price of the building.

If you are in the market for a new house and haven’t secured a home loan yet, there are many options catering to all ends of budget spectrum.

Questions to ask yourself before buying a house

Buying a house in Australia is no mean feat these days with prices seemingly on an endless upward incline. You want to be sure that the house you have fallen for is right for you how you live now and can be adapted into the future.

Is there an all weather indoor/outdoor area?
In Australia, with most of the country being blessed with good weather year round, it really makes sense to have an area that combines indoor and outdoor living. This can include a covered deck or patio which should be ideally facing north to take advantage of winter sun. With open plan interior design sticking around, a good way to connect indoor and outdoor spaces is with large glass bifold doors manufactured by companies like Brio. These exterior folding doors enable the space to not have a defined boundary to the outside, in effect doubling the usable space of a building.

How much maintenance will you need to do?
Stunning gardens with vast expanses of lawn look great at home inspections, but you need to bare in mind the work that goes into maintaining lawns and gardens. If you don’t have a lot of spare time, or work long hours, you may need to get extra help to keep your garden looking nice. If you this idea doesn’t appeal to you, look for houses with lots outdoor living space in the form of paved or decked areas rather than lawns.

Does the exterior need painting?
If you love timber or weather board cladding, be prepared to repaint the entire house every 10 years or so. If sounds like a hassle, there are modern materials that mimic the look of timber but require much less if any upkeep. Stained timbers will need re-staining every few years depending  on their location and exposure to the elements.

Will the look date quickly?
Architecture like any design, is influenced by fashion and trends to a certain degree. The latest hyper modern design may look great now, but ask yourself if it will still be desirable in 10 or 20 years? House interiors can be updated as trends change, however the “bones” and external shell of the house is a lot harder to change. Make sure the exterior of the house looks elegant and well designed. Clever and light filled interiors spaces never go out of fashion.