Pre-search
Pre-search
Congratulations! You're about to start of one of the most stressful experiences of your life 😵 But I'm here to hopefully alleviate that a bit!
Define your home
Which suburbs do I most want to live in
Do you have friends and family nearby in specific areas?
Which suburbs do I most want to live in
Do you have friends and family nearby in specific areas?
Speaking same is a great tool for getting quick dives into suburb profiles. It breaks down property data, nearby facilities, demograpghic and even crime rate among other things.
Speaking same is a great tool for getting quick dives into suburb profiles. It breaks down property data, nearby facilities, demograpghic and even crime rate among other things.
How many bedrooms?
Think about kids, study rooms etc. A lot houses will be marketed without a studyroom so it's good to consider this when looking later too.
How many bedrooms?
Think about kids, study rooms etc. A lot houses will be marketed without a studyroom so it's good to consider this when looking later too.
How many car parks?
Parking in garages, crime rates and other factors can all affect your premiums. Make sure you know fully what you're compromising on before making a decision about parking.
How many car parks?
Parking in garages, crime rates and other factors can all affect your premiums. Make sure you know fully what you're compromising on before making a decision about parking.
Compare the market has a great article that summarises this in more depth with the numbers
Compare the market has a great article that summarises this in more depth with the numbers
Nearby amenities
People often talk about the 5km radius. This refers to having accessible amenities such as supermarkets or parks close by for convenience.
Nearby amenities
People often talk about the 5km radius. This refers to having accessible amenities such as supermarkets or parks close by for convenience.
Google maps is the place to go to find t hese. There are many set filters ready for you to use
Google maps is the place to go to find t hese. There are many set filters ready for you to use
Consider how many years you'd be living here for
Recovering stamp duty costs often takes a few years of growth. Are you planning to outgrow this house? Or is this going to be somewhere you want to be stable in until later in life?
Consider how many years you'd be living here for
Recovering stamp duty costs often takes a few years of growth. Are you planning to outgrow this house? Or is this going to be somewhere you want to be stable in until later in life?
Work out your budget
Calculate your monthly spending
This will save you a lot of time with your bank / broker
Calculate your monthly spending
This will save you a lot of time with your bank / broker
Moneysmart has a pretty comprehensive expenses calculator
Moneysmart has a pretty comprehensive expenses calculator
How much can I afford in repayments?
Consider your highest spending months (Car insurance + registration? Think about potential body corporate fees and council rates)and your savings buffer here.
How much can I afford in repayments?
Consider your highest spending months (Car insurance + registration? Think about potential body corporate fees and council rates)and your savings buffer here.
Figura.finance is a great calculator to see what your repayments might look like with various conditions (offset accounts, extra repayments etc)
Figura.finance is a great calculator to see what your repayments might look like with various conditions (offset accounts, extra repayments etc)
If interest rates go up by 2-3% will I still be ok?
Considering that the worst happens, will you still be able to afford your homeloan? It's great getting your dream house, but having to default on it is a horrible experience.
If interest rates go up by 2-3% will I still be ok?
Considering that the worst happens, will you still be able to afford your homeloan? It's great getting your dream house, but having to default on it is a horrible experience.
How much deposit do I have?
Learn about what your deposit typically needs to cover. This may include stamp duty, conveyancing, building and pest reports etc.
How much deposit do I have?
Learn about what your deposit typically needs to cover. This may include stamp duty, conveyancing, building and pest reports etc.
Money smart has a great guide for deposits, buying schemes and things to consider
Money smart has a great guide for deposits, buying schemes and things to consider
Things to talk about with your broker
(if applicable)
What's my borrowing power?
Online calculators will give you a rough idea but only the brokers and bankers can tell you the real number
What's my borrowing power?
Online calculators will give you a rough idea but only the brokers and bankers can tell you the real number
It's worth shopping around. Some banks offer great rates but have a low risk appetite for lending. Generally your broker will be able to help with this.
It's worth shopping around. Some banks offer great rates but have a low risk appetite for lending. Generally your broker will be able to help with this.
Can I increase my borrowing power?
There's usually ways such as closing credit cards, clearing HECS debt if there's a little bit left etc.
Can I increase my borrowing power?
There's usually ways such as closing credit cards, clearing HECS debt if there's a little bit left etc.
This REA article gives a good rundown of ways at a high level
This REA article gives a good rundown of ways at a high level
Government schemes
Schemes liks FHOG/FHBG / FHSS etc, can save you costs like stamp duty or LMI. Talk to your broker and make sure you understand the complications of each scheme.
Government schemes
Schemes liks FHOG/FHBG / FHSS etc, can save you costs like stamp duty or LMI. Talk to your broker and make sure you understand the complications of each scheme.
First home buyers guarantee (This is a great scheme for most, 5% deposit + no LMI)
First home buyers guarantee (This is a great scheme for most, 5% deposit + no LMI)
First home super savers scheme (Potentially the highest value scheme if done right. Recommend talking to an accountant about this)
First home super savers scheme (Potentially the highest value scheme if done right. Recommend talking to an accountant about this)
First home owner grant (I would personally be a bit wary of brand new homes. Typically very prone to defects with price premium)
First home owner grant (I would personally be a bit wary of brand new homes. Typically very prone to defects with price premium)
Goals for the property
Depending on if you want your forever home, build equity for future investments, or if this is just a stepping stone for your next house, a good broker is the best person to go to for this advice
Goals for the property
Depending on if you want your forever home, build equity for future investments, or if this is just a stepping stone for your next house, a good broker is the best person to go to for this advice
The 6-year rule is a powerful tax break you may want to look into. Note that this rule only applies as long as you have 1 primary residence.
The 6-year rule is a powerful tax break you may want to look into. Note that this rule only applies as long as you have 1 primary residence.
Lender's mortgage insurance
It can be worth it sometimes in a growing market to get your foot into the door quicker, but there are also various government schemes and ways to avoid this such as getting a guarantor for your loan.
Lender's mortgage insurance
It can be worth it sometimes in a growing market to get your foot into the door quicker, but there are also various government schemes and ways to avoid this such as getting a guarantor for your loan.
Helia has a decent LMI estimation calculator to get a rough idea of what the extra cost may look like
Helia has a decent LMI estimation calculator to get a rough idea of what the extra cost may look like
Learn about offset accounts and redraw
These can be huge mortgage saving tools! But come with a few complications
Learn about offset accounts and redraw
These can be huge mortgage saving tools! But come with a few complications
Wespac has one of the better articles on this topic and the tax complications of redraw accounts (Which can be used to your advantage)
Wespac has one of the better articles on this topic and the tax complications of redraw accounts (Which can be used to your advantage)