When you are buying a home in the Northern Territory it helps to understand the best home buying process to follow. What to do and when you do it plays a key role in making the journey of buying a home go more smoothly.
Finances
In the first step of the home buying process you need to take a look at your budget and determine how much you can afford. This involves financing for the coming years, making sure you can pay the mortgage and all your other obligations. Quality of life is also important so try to leave as much room in your budget as possible for the little things in life.
You can figure out your budget by deducting your total monthly expenditure from your total monthly income after tax. Income includes any assets you have after purchasing a home as well as any regular monthly income you get on top of your wages. Think in terms of job stability, promotion and family planning and, remember, leave something in your budget that will allow you to enjoy life.
The next step is learning how much you can actually borrow from lenders. There are online calculators available which may give you a pre-approved amount. However, speaking to lenders directly will also help you understand your borrowing power. Other factors to consider include at least 10 percent of property value for a deposit and stamp duty costs can total several thousand. There are also first homebuyer concessions and other types of relief that may be available to you, so speak to a financial planner.
You will want a competitive home loan with beneficial interest rates. The type of loan that you opt for should depend on your needs. A fixed loan provides the benefit of always knowing what is ahead of you in regard to payments. However, you could benefit from lower payments if rates fall by choosing a variable rate loan. Your financial planner can help you with these decisions and more.
Market Deals
It is time to be vigilant if you want to pick up the best deal on the market. Properties are not exclusively advertised on homebuyer websites. You may find deals on TV, in the newspaper and the social media sites that you browse every day. If you have an area in mind, make sure you let a number of real estate agents know so they will keep you in mind if suitable properties go on the market. If you want to get the real buzz on comparative sales, Home Price Guide from Australian Property Managers is worth keeping an eye on.
If you have tentatively agreed with a seller that you like a property, don’t rush into making an offer – especially if the property seems too good to be true for the price. Building inspections are vital if you wish to find all the defects in a property before you sign on the dotted line. Houspect provides detailed and easy to understand pre-purchase building inspection reports to homebuyers in Northern Territory.
Once you are satisfied that the property is worth the price tag, warts and all, it is the time in the home buying process that you can make an offer. Don’t lose a property that you really want by being too rigid during negotiations. It is expected that buyers will bend on price as much as sellers. If you are dealing with a real estate agent, the typical offer is 5 percent lower than the asking price. You may be able to increase this percentage in a slower market. A property may also go to auction, which means you will be bidding against other buyers. There are other options such as forwarding a sales summary via a solicitor.
Legal Paperwork
Once you have agreed to the sale you will have to deal with any legal legwork. Check all legal paperwork, such as the contract, thoroughly to make sure that everything is correct and in order. It is recommended that you have a lawyer look over the contract. There is also the matter of conveyancing which involves transferring the property title to you as the new owner. Finally, there is settlement day where you pay and take ownership of the property once the cheque clears.
Good luck!
