Buying property, HOW?

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waruikazi

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I want to buy my first property by the end of this year.

I don't know the first thing about buying, or even renting, property. I've somehow managed to live on my own since i was 21 without paying rent... ever but that is another story. None of my friends own property without their parents involvement, so i really don't have anyone to get advice on this from.

I have a deposit, i still have one relatively large debt which i'm not sure if i should clear before getting a loan or not. The absolute minimum you can buy anything for in Darwin is $380'000...

Help me out here. If you have bought something recently tell me how to do it!
 
first step talk to a mortgage broker normaly first visit is free. they will look at all your details monthly earning outgoing ect and point you in the right direction. dont scimp on a building inspection i did and cost me dearly got a cracked slab and half my house is sinking..... costs around $500 to get one worth it for pice of mind... any thing else ya want to know p.m me
 
Just some general advice,It would look much better to show finance that you have no other large debt,also will give you better credit history.When buying don't have champagne ideas on a beer budget,start small but research everything you can on areas,council plans regarding development,insurance claims in particular areas,police involvement,surrounding facilities,buy the worst house in the best street and renovate,important to workout if its you first or last house.
 
Walk into a bank and tell them you want to buy some land or a house. They will do some checks and tell you how much you can borrow. It's pretty simple.
 
Research, research, research.....a broker, financial advisor, also look up the internet on...how to buy a home....then....buy my place, it's a lovely starter home, 3 x 1 brick.... LOL.... and I want to sell it so we can go into a retirement place. Damn....it's in WA probably to far away for you. :) Just don't rush into anything.
 
i found the broker cut out the b.s and tell you what ya need to do prove to get the loan ya want but dont sighn anything till ya talk to a couple of diff guys and shop around. as i said broker are usualy free and financial adviser will most likely cost. im near your age and have just got my first house. o and bigger deposit means higher chance of a loan
 
Speak to as many people in the property business as you can find,its better having advice from 10 than 1 or 2 .Financial advisor,morgage brokers,banks,real estate agents,councils,annoy them all till you can make a educated and comfortable decision
 
Ah man this is scary, signing 30 years of my life away. I suppose it has to be done but!

I also wont be able to live in anything for about the next 2 years. I'm thinking that i would be a fool to waste the opportunity of getting some rent money out of what i own.
 
At the end of it all you are going to living with your decision,not any broker,bank whatever,so don't let them tell you what you want.Your life,your money,your choice.Not scary,life,you won't be the first or last to be worried about it.
 
Are you looking at building or buying established? Make sure you consider first home owners grants (which probably won't apply if you rent out) and stamp duty. Also don't borrow to your max because if interest rates go up you are screwed.
 
Get rid of the debt, talk to the bank, research the property market, and - most important of all at this time - bargain hunt. Property prices are unstable at the moment, we* got ours at auction for 40% of the initial asking price and for 60% of the reserve. Go to auctions and see how may are being passed in atm.

*When I say we I mean my wife, I was actually at the first Gladstone reptile show, first I knew about it was a phone call ("I've just brought a house, I'm signing the papers now and you can't stop me -HaHaHa").
 
Have all your paperwork together when you see a mortgage broker or a bank: savings history (bank statements), credit card use (credit card statements), proof of income (pay slips and tax assessment notices), details of assets (including super), details of any debts (repayment slips) and what, if anything, you pay in rent now.

It's also worth getting a copy of your credit file. Credit files, which lenders will check, can and do contain mistakes that you'd be better off sorting out before you apply for a loan. You can get one free (if you choose to wait 10 days) here: Credit Check Australia, Credit Rating, Credit Report | MyCreditFile.com.au

When it comes to property hunting, never assume the real estate agent is on your side. The standard contract they will give you, at least in Victoria, gives you very little opportunity to get out of the sale. You're perfectly entitled to make an offer with your own contract. It's up to the vendor (the seller of the property), not the agent, to take it or leave it. At the very least the contract should have "subject to finance" and "subject to a satisfactory property inspection", satisfactory being your definition of satisfaction, not the agent's. A solicitor or lawyer specialising in conveyance can help you here.

I second what's been said above - get a building report! Never trust the agent if they say that crack is just the paint. Even if that's what they genuinely believe, in general they're not trained architects and wouldn't have a clue.

I haven't bought before but came very, very close once. I'm hoping to buy or build something before the end of the year as well.
 
Most likely buy something already built, but then again i'm still not sure.

Are you looking at building or buying established? Make sure you consider first home owners grants (which probably won't apply if you rent out) and stamp duty. Also don't borrow to your max because if interest rates go up you are screwed.
 
Remember you're not really signing up for 30 years....most people sell after about 7 years...though I've been in my present house 13 yrs and the only reason we want to sell now is for health and age reasons and we want to go into a retirement unit.
 
Ah man this is scary, signing 30 years of my life away. I suppose it has to be done but!

I also wont be able to live in anything for about the next 2 years. I'm thinking that i would be a fool to waste the opportunity of getting some rent money out of what i own.


In my opinion the money you would be spending on your mortgage and the fact you pay no rent would be better of placed in a high interest earning account for 2 years meaning you would have a larger deposit for a bigger loan or the same loan and reduced interest and you will bring the mortgage down faster.
I would have hated it if my first home had been rented out before I had had the opportunity to live in it and the tenants were bad, leaving me not wanting to live in it.
 
are you working full time?
the length of time employed will affect ur chances of a loan, as will being self employed,...

a broker will ask all the right questions to make sure u are eligable for the loan, and find u the best one, my guy was great! :)

i had to do a few things, like reduce my credit limit of the card, i used my tax account as 'proven savings', since the cash from selling my investment property wasnt good enough for them.

now, rent VS living there, my advise is to move in straight away, try and stay there for 6 months (even if that means moving in and taking on a flatmate).
the reason is, if you buy a place as an investment property, when you sell you will pay capital gains tax on whatever profit you make,...

if you live there first and then rent it out, you have 6 years before CGT will be applied to your 'gain'

and befoer you start house hunting, make a list of things that are important to you,...

and definately definately definately fork out for all the right inspections,...my inspection was ok, but alot of friends turned places down due to cracks, termites etc,....well worth teh outlay.
 
I think Elapidae1 is right. You will make more money investing your money now and putting the money you would be paying off the loan with away than buying now and renting the property out. At 7% on a $300 000 loan you are paying more than 20k in interest alone per year.

You should also be entitled to some sort of first home owners grant (I dont know how it works in the NT) but obvioulsy this wont apply if you rent the property.
 
If you are not going to move in straight away as has been said invest the money for the 2yr's you'll be better off at the end. You lose your first home owners grant if you don't live in it for the first 12 months. Don't be to quick to pay off that debt have a chat to one of the mortgage brokers first. Having a history of paying off debt improves your credit rating. Also you may want to look at how much you put down as a deposit as holding some back can be useful to get a month ahead on your repayments and if things need repair that you didn't notice before you moved in.
 
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