Buying a property can be both exciting and daunting.
It is a good idea not to rush into such a big investment that will definitely have a huge impact on your life.
This step by step buyers guide lets you know the basics of what you should be doing before committing to buying your property.
Step one Work out your monthly income and expenses.
Sit down (with your partner if you are buying together) and draw up a spreadsheet of your money coming in and each monthly expenses.
Make sure you include perishables like food and toiletries as well and any other hidden costs that bounce out at you every now and then (your car license for example) Find out exactly how much surplus income you have to put towards a property and make sure you are not over extending yourself.
Step Two Hop online and use any of the Home Loan Affordability calculators available to find out what amount you can shop for.
Work it out at the prime interest rate to make sure you are calculating worst case scenario.
Do NOT let any estate agent talk you into buying something more expensive that what you can afford.
Rather keep the extra money they would have talked you into spending and use it for renovations at a later stage to improve the value of your property.
Step Three Approach a mortgage originator or a bank and obtain a Pre-Approval of the amount you wish to buy for.
This you can take with you when house hunting to show to sellers to let them know you are serious about buying and the bank has already approved you in principle.
Step Four Shop for your house.
Be careful of buying the first house you see.
Insist on an electrical certificate and beetle free certificate.
Shop around so that when you buy your house you know for sure it's the one you want.
It is a massive investment after all.