10-Point Checklist For Buying A New Home

Aug 18, 2022 Buying a new home is one of the most crucial financial decisions, especially if it is your first home. It is obvious to feel anxious and confusing when choosing the right residential property in a big metropolitan city like Melbourne. Being one of the most liveable cities in the World, the capital of Victoria is best known for its high-rise residential buildings and top-rated education facilities and infrastructure developments. However, it is ranked as the second most expensive city to live in Australia. Buying a new home requires a lot of market research, finding the ideal location, money lending basics, financial assessments and much more. After buying your home, plan a safe and sound home relocation process. Make sure you prepare everything in advance and hire professional removalists Melbourne at least 4 weeks prior to your final moving day. But, before that, look at the following checklist and buy your dream home in Melbourne without any hassle. Let’s Get Started!

1. Prepare Yourself

It is important to ask yourself whether you are ready to make this huge investment or not. Before searching for your new home, take a deep break and know what you need. It is a lifetime commitment, and relocating from one place to another can be mentally and physically challenging for the entire family. Know why you want a new abode in a cosmopolitan city like Melbourne. So, multiple factors can influence your decision. Slowly and steadily, go through them, discuss everything with your family and kids and make the right decision. Find out whether you have job security or not because this will help you lend money without any stress.

2. Know Your Financial Needs and Estimated Budget

This is one of the important steps to consider when buying a new home. You should know how much you can lend money from the bank. Several factors can help you decide the borrowing capacity and estimated budget. Contact your accountant and find out what you can afford and how much you can borrow. It is imperative to apply for a copy of your credit file and ensure you clear all your debts. Having bad credit won’t work in your favour. This will help you know your current financial position, and you can narrow down your search accordingly. Tip: Always keep a budget for your packing supplies, removalists Melbourne and other expenditure when buying a home.

3. Evaluate the Cost of Buying a Home

In this step, you need a financial advisor or a lender to help you calculate the actual costs of buying a home. If you are still confused whether to buy or rent a property, then keep the following costs in mind and decide:

4. You need 10 to 20 per cent deposit to secure a home loan.

• Stamp duty expenses
• Legal & Conveyancing fees: Make sure you put aside around $1000 to $3000
• Finance and insurance costs
• Building & Pest Inspections

Some other costs include utilities, mortgage repayments, council rates and strata fees, mortgage protection insurance, and repairing and maintenance costs.

5. Discover about Mortgages & Interest Rates

You are lucky enough if you have more than 30 per cent of deposit readily available. This will make it easy for you to find the best home loan. Make sure you consider the following aspects:

• Rate of Interest
• Term of the Home Loan
• An option to redraw funds
• Making additional repayments and other conditions

Do proper research and find the bank that can give you a home loan at the lowest interest rate.

6. Pre-approve Your Home Loan

Securing a pre-approval loan before searching for a new home is a good decision as you can know your estimated price range. The savings, income and investment details gathered by your bank or lending company will help you know how much money you can lend.

7. Location and Property Type

This is one of the most important phases because you are emotionally involved. Choosing the right or most suitable location and type of residential property are the most pivotal aspects. Whether you want to live close to the CBD or want a suburban lifestyle- all needs to be settled down in this step.

• The location must be close to the school, workplace, and hospitals
• Easy access to the public transport and local market
• Well-established area
• Friendly and safe suburb

Finding an affordable home in Melbourne requires a lot of research and elbow grease. When it comes to the property, you need to research the property market and decide accordingly. You can also buy a luxury apartment or a spacious home with a huge budget.

8. Contact the Real Estate Agent

Do not forget to contact the local real estate agent to discover everything about the location and neighbourhood. This will help you make the right buying decision. They can also negotiate with the seller and help you in various processes. It is important to consider everything before making the final decision because you have to change the address before relocating to your new home. So, be careful and make wise decisions.

9. Inspect the Property

Make sure you thoroughly inspect the property from top to bottom, including:

• Mould
• Doors
• Sagging Ceilings
• Water Supply
• Doors and windows
• Carpets
• Light and Fuse Box
• Guttering, roofs and drains
• Security System

10. Prepare for Relocation

Make sure you create a complete moving checklist and hire professional removalists Melbourne for the safety of your belongings. Pack your stuff in quality boxes and relocate everything in an organised manner.

Conclusion

Buying a new home doesn’t have to be complicated. All you need to do is to follow this checklist properly, and you can also discover more about first home buyer grants in Victoria to support your financial needs.