Mr Taxman
Change the way you feel about taxes.
Get informed and discover what the taxman doesn't want you to know.
Sharing it with Australia, Mr Taxman is a regular Woman’s Day columist and TV finance commentator
  • click to visit Mr Taxman on Twitter
  • click to visit Mr Taxman on FaceBook
  • rss

Buying a house

Mar 01, 2011

Buying a house is one of the biggest financial commitments you will ever make. With summer drawing to a close and the financial hangover of Christmas behind us, this time of year is when most house hunting takes place.  Here are a few tips if you are buying a property.

BEFORE YOU START LOOKING

Do a budget

Fail to plan, plan to fail.  Plenty buy homes without any really savings plan and subsequently do things tough.   If you are upgrading your house, make sure you forecast a realistic sale price on your old place.

Save 20%

You should have a minimum 20% deposit to create a buffer should you lose your job, if interest rates rise or you start a family.  You will also avoid mortgage insurance!

Secure pre-approval

Getting pre-qualified for a loan is one of the first things you should do. Make sure that it is in writing, particularly before you bid at auction.  There is nothing more frustrating than having a lender say no to your dreams.  Before you apply get rid of any personal loans and credit cards.

DURING THE HOUSE HUNT

Do your homework

Failing to research the housing market is a rookie mistake.  Do not rely on the agent's listing price as a guide as they are acting for the seller.  Look at lots of properties.  Get historical sales reports and ask for land rates and building insurance notices to ascertain the true value. 

Look at external factors

Yes it may look like your dream home but what about the neighbours? The traffic? The lack of parking?  Or how about the noise from the nearby industrial park?  Or worse, the aircraft noise every five minutes? Do you work night shift and need to sleep during the day?

MAKING AN OFFER

Don't let emotion take over

Are you an impulse buyer?  Yes purchasing a home is very emotional, but there is too much at stake financially if you get too attached and go over your budget.  Set some ground rules beforehand attending auctions. 

Don't stretch yourself

It is better to buy a smaller house and live a comfortable life with regular family holidays than have a huge house and not being able to enjoy it because you have to work overtime and weekends just to meet repayments.

Don't buy just to get in the game

If you plan on selling the house within a few years then don't buy it in the first place.  Stamp duty, agent's commission, legal fees, mortgage insurance and loan charges can result in $50,000 going down the drain.  Property is a long-term investment.

BEFORE YOU SIGN

Inspect it

Many properties have been purchased only for them to be riddled with termites.  If you don't get an independent pest and building inspection report done prior to exchanging contracts then you are running the risk and it could cost you thousands in the future.

ON SETTLEMENT

Enjoy the unpacking by getting yourself a nice bottle of champagne to celebrate your new purchase!


Tags: Property

Author: Mr Taxman

Comments

Post a New Comment

Media Availability

Are you interested in booking Mr Taxman for a speaking engagement or requesting his viewpoints for an article?

comments-rhsLatest Comments

  • " Thanks to { dr.obho } he is a great spell caster who brought my ex husband back I want to tell everyone about my meeting with ( dr.obhogreatspell@gmail.com) who bring back my ex lover within the..."

    By: marria at Nov 13, 2018 2:03PM

    Post: Marriage

  • "I am so greatful to Liberty Private Loans for helping me with a loan of 700,000.00 USD through the help of the loan consultant Robert Micheal Green, i am eternally grateful to you. my life has turned..."

    By: smiles at Nov 12, 2018 10:39PM

    Post: The secret to getting your loan approved

  • "XMAS XMAS XMAS DISCOUNT/GIVEAWAY!!! Welcome to AVANT LOANS, Do you need a genuine loan Online to secure your Bills? Starts a new business? Do you need a personal loan? or Business loan, Apply for..."

    By: Avant Loans at Nov 11, 2018 6:02AM

    Post: The secret to getting your loan approved

  • "m giving this testimony because l am happy My name is mrs. SUNNY LOW from Houston,taxes.i never believed in love spells or magic until i met this spell caster once. when i went to Africa in December..."

    By: SUNNY at Nov 08, 2018 1:45AM

    Post: Marriage

  • "Do you need business loan, personal loan, auto-loan, agricultural loan, or project funding? We have good news for you. Florence private loan Finance, setup a national lending institution to give..."

    By: Mrs Florence at Nov 07, 2018 3:36PM

    Post: Two important dates for those with HECS/HELP debts