Hi we have yet to buy our first house so we are doing lots of homework before we dive in. Would be interesting to know of any pitfalls you may have come across and the hidden costs you may have found when you bought your first house.
Any hints, tips or words of wisdom would be appreciated.
Cheers.i would suggest you have at least an extra 5% of your purchase price set aside so u can pay for the cost, stamp duty.. and so on and so fifth.
it can get quite costly by the end
NEO
NICE ONE BRUVA!! Nice One Bruv! nice one
Cremin
My tip is when you do an inspection ask very specific questions about what is and isn’t included … Do I get that? etc, as you can get to a day before settlement and find that those little touchs that made the house so nice are on the back of a truck.
Good luck with the research i look forward to hearing about your successes.
Cheers
Leigh K[
]Read, learn, grow but most of all just do it.
Hi Cremin,
The main thing that we found was that when the property managers say the house will take “XX” weeks to rent out, you can pretty much double it.
Also, don’t believe what price they tell you you’ll get for rent. Make sure that you do your own due diligence, checking what rentals other RE Agents have on their book in the town.
Try to rent it first of all at the right $$. An extra 2-3 weeks vacancy starts adding up!!
Good luck,
Del
Cremin,
What I have found is in order to afford a porperty you need at least around 26% availalbe of purchase price. I dont know which state you from but here in VIC stamp duty is enormous.
We always pay about 5% SD. Then you have about 10% Deposit you need to pay and because you borrow 80% of contract you need to cover an extra 10%.
You need that 26% somehow, ie equity etc. But of course there is mortgage insurance and different lenders can do more for you and if you really clever you dont even need 10% deposit. But just in case to cover yourself.
Hope this helps
vluu
Just following on from Leigh’s comment, put all the little extras that they say are included into the contract, otherwise they have no legal obligation to leave them even if they verbally said so. Had this happen to us recently where it was not explicit in the contract and things they said were included were not left behind.
Make sure you stay in control of the purchase process. Don’t just let it happen, thinking that everyone involved knows what to do and when.
eg. chase up your solicitor re the conveyancing – don’t just assume they are doing it (your file may be under some other files) – keep them moving!
And the same with finance – depending on your lender, or if you are using a broker – make sure you keep ‘pushing’ it through. Don’t just sit back and wait expecting it all to be ok.
Hopefully there shouldnt be any problems, but better to be on top of it all yourself where you can be. Good luck! [
]My advice would be DON’T LISTEN TO THE REAL ESTATE AGENT and do your own homework to try and establish value, rental return etc.
I can’t believe the things we have been told by agents over the years in order to try and make a sale (sorry to all those honest agents out there…unfortunately my experiences have been pretty much all bad!!)
Cheers.
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