Tuesday, January 6, 2009

ArticleBase Presents: Beginners guide to buying a new home in Australia

By: Andrea Patterson

Buying Property in the major cities of Australia is doubtlessly an intelligent decision for those who want to buy investment property. As a beginner if you want to buy property for the first time in Australia, remember this task is somewhat daunting and must be done with proper planning. Some homework with little planning and clear understanding matters most with the decision of buying a house of your own in Australia.

Before you start looking for the house of your dreams, it is always a good idea to sketch a plan of how large the house should be, where it should be located and how much it may cost you. Then, assess your financial capacity to see whether you can afford the required finance. A clean assessment of your financial strength will surely give you an idea of what price range you can afford. Keep in mind the additional ongoing costs, which you need to bear when you own a house such as tax rates, insurance etc.

Work out how much money you have for the deposit. These days when it comes to borrowing money to purchase property, your current levels of debt, living expenses, credit card bills will be taken into account and in real way this should be less than or equal to around 30% of gross income.

You can buy property or home units directly from the private owners or through real estate agents. Although, you can purchase house or buy land, taking the help of private sales, but working in Australia recommends that, you find and buy a home through Real Estate Institute of Australia. You can also go through some newspapers featuring real estate properties that will guide you regarding how to buy land and purchase property wisely.

Nowadays, you will come across many online calculators that can assist you in providing an idea of what the lender may lend you to buy property. You can also take the help of banks and mortgage providers who are helpful enough in guiding you to choose from the available loan products with different schemes and current interest rates. Remember there are a plenty of loan schemes available in the market and here you really need to decide which one fits your needs. The loan should be payable and should allow you to make extra repayments at no additional costs.

Next arises, the question of proper planning. Before you set out to hunt for the house of your dream, do your homework thoroughly. Think about what you need at home; see whether it has greater accessibility to places of importance. Take into consideration how many rooms you need, whether proximity to places of importance is necessary or whether you are prepared to do renovations on your property in near future.

Once you have found the house of your dreams, you can sit for negotiating procedure to purchase house. The next thing you can do is to consult your legal adviser. Your lawyer should check the contract and make sure it contains all required documentation, terms and conditions. Both you and the seller must preserve a copy of the contract and once both parties have agreed to any changes, the contract will be exchanged.

The final step in the house buying process is settlement. This is when the buyer pays the balance of the agreed purchase price and in return, the title deeds of the property are transferred from the seller to the buyer. Finally, the lender holds the title deeds until the loan is repaid.

Article Source: http://www.articlebase.info/Article/Beginners-guide-to-buying-a-new-home-in-Australia/84610