It’s only natural to feel disillusioned when you miss out on a potential property that you really like. You’ve spent time researching and often money on a building and pest inspection to make sure this is ‘the one’. In a hot market like this, it’s even more frustrating when properties go way over the price guide listed. The important thing to remember is not to give in to frustration and make a ‘fed up’ purchase simply because you’re afraid of missing out.
With interest rates now at 2.25 per cent and talk of another strong year in the property market, you can see why prospective buyers might jump at the chance to purchase a new home or investment property. I am very much of the view that the sooner you get into the property market the better however think before you leap and always borrow within your means.
A big mistake that many home buyers make is procrastinating when they’ve found a property that ticks most if not all their needs. They labour too long in making a decision and miss the property that they've been waiting months, sometimes years, to find.
The hesitation usually comes from fear. Buying a property is one of the most stressful transactions most of us will ever make and the biggest stress usually comes from the fear of paying too much. There is nothing worse than realising you could have bought better, and it’s too late once the contract is signed.
It's devastating to see the results of the floods in Queensland and NSW. Particularly for those about to go through the painful process of cleaning up or rebuilding their property, some who are doing it for the second time in two years.
A recent First Homeowner Survey by Mortgage Choice was an interesting read with almost 20% of first homeowners regretting buying their first property.
According to the survey, more than one quarter (27%) of this group felt they should have bought in a different area, 26% said they regretted not shopping around for more property and 21% said they wished they had waited until they could afford a property that was closer to their ideal home.
I am often asked how to do or how to find ‘no money down’ property deals. The following is generally my response. Q. Have you been to a property seminar recently? The answer is usually YES. More often than not if you go to a property seminar you will hear there are many ways to do no money down property deals particularly on the glossy, get rich quick seminar brochures, apparently it’s easy! I disagree.
In a wise move the NSW Government is tightening up the stamp duty exemptions - after all the savings are essentially passed on to vendors though increased sale prices rather than helping out the buyer. Come December 31 and exemptions and subsidies for first home buyers on existing homes under $600,000 come to an end.
I often see people getting out and about attending open homes and speak to many who tell me they are spending several hours each week searching on real estate websites when they haven’t done the basic preparation. If you’re one of them then here are a couple of tips to point you in the right direction:
Next week on the 1st of July, the new NSW Home Builders Bonus comes into play which is sure to attract plenty of attention. In a move designed to stimulate the building market, vacant land with a price tag of less than $400,000 as well as off the plan property up to a value of $600,000 will be stamp duty exempt. There is also a specific incentive for the seniors market where a new home can be stamp duty exempt with a value of up to $600,000. Of course you will need to read the fine print for all conditions.
Why do people purchase properties at their limit and often beyond their means? These properties often come with more bedrooms and bathrooms than they really need. Before you put yourself and your family under extreme financial stress take a step back and evaluate the big picture to determine what’s really important.
