3 Considerations Before Breaking Into The Property Market For The First Time
You've made the leap to get into the property market but not sure how to go about making certain decisions? You're not alone. Buying a home is daunting, especially with median prices in Sydney and Melbourne at $895,342 and $720,417 respectively. At these hefty prices, you don't want to end up making a mistake. Here are some considerations before breaking into the property market for the very first time.
Make Sure You Can Afford Your Mortgage
A mortgage is one of the biggest expenses you will incur every month, so you need to make sure you can actually afford it after taking into account your lifestyle. For example, if you have existing loans like car loans, education loans and personal loans, then you might want to consider taking a lower home loan rather than overextending your ability to pay back in the long run. Consider reviewing your current financial situation before you even start looking at houses, so you know what price range you can actually afford. This way you can look for a home within your budget without having to compromise on your lifestyle.
Consider Your Current And Future Lifestyle
While it is important to consider your current lifestyle when choosing a home, you will also need to take into account your future plans. For example, perhaps you're a couple now and only need a one bedroom apartment. But if you're planning on starting a family in the next few years, then you may want to consider a two or three bedroom property to accommodate your growing family. If you intend to remain a couple for a long time, then perhaps a larger home with higher maintenance may not make sense. Similarly, if you want a low maintenance home, then buying a fixer upper will not be a good decision.
Make Sure You're Happy With The Neighbourhood
As a first time buyer, you probably intend to live in the house for a few years, so you'll want to make sure the neighbourhood suits your specific needs. For example, as a young family, you may want to live in a kid-friendly suburb with lots of parks and walkways. If you're a senior, then you may want to live around like-minded people who enjoy doing similar things as you. Consider what you want from your neighbourhood before you intend to buy a property.
Breaking into the property market requires careful planning. Consider these factors before you make the decision to buy.
