Buying your next home can be stressful and exciting at the same time. Here are some things to consider when buying your next home.
Suburb (or Location)
Are you looking to stay in the same area but upgrade or downsize? The dynamics of your suburb may have changed since you purchased your current home, importantly the median price of property could have changed too. If you decide to stay in the same suburb, you already have a good idea of amenities, proximity to work and family and familiarity with the lifestyle the suburb offers. If you are looking to move to a new suburb, some things to consider are:
- Distance to work
- Flood or bushfire zones
- Lifestyle – cafes, restaurants, and bars
- Local shopping centres
- Parks and outdoor space
- Proximity to CBD
- Public transport
- Sense of community
- Surrounding schools and universities.
To learn more about the dynamics of your suburb or the suburb you’d like to move to, you can request a free suburb report. Take some time to explore the area on the weekend and attend any open community events in order to find out about the lifestyle and sense of community.
New home checklist or features and characteristics
What do you need and want in your new home? Write up a list and take it to property inspections! Needs are a must-have and wants are nice to have. When searching for a property, you may not find everything you need and want, so identify your priorities and focus on what’s important to you. Some things to consider are:
- Amenities – are they up to scratch or will they need work?
- Garden size
- Number of bedrooms and bathrooms
- Potential extensions.
If you are willing to make compromises on the home’s features, consider if the home will suit your future needs. Will you be able to make extensions or renovate in the future? If the kitchen is still working but not aesthetically pleasing you could look to buy now and update in a few years’ time.
Why not try our helpful Home Inspection Checklist?
Simply download and print the checklist, then take it along to your open homes and you will be able compare potential properties, easily and efficiently.
What to do with your current property?
Do you sell your current property first, then buy? Or do you buy first, then sell?
Sell then buy
If you sell your current home before buying your next one you may need to line up alternative accommodation. Selling first could give you a little more insight into your purchasing power i.e. you’ll have a better idea of how much money you have for your next home.
Buy then sell
Buying a new home before selling could be expensive as you may have two loans to service, but you won’t have to find alternative accommodation. You could consider a bridging loan option, which covers the period between buying and selling if it takes a while. It does come with a slightly higher rate but can get you through the short term of holding two properties. Things may not go to plan and if you find it hard to sell your existing property you may have to consider renting it out to cover the home loan.
Buy and sell at the same time
A third option is to buy and sell at the same time. This can be more difficult to arrange as both settlements occur on the same day. However, it allows you to move in straight away and have a seamless change of home loan.
Consider the settlement time frame
Whichever option you take consider the settlement timeframe. Extending can be beneficial to give you time to buy another property or sell your existing one.
Changes in the property market
The property market is constantly changing, and it can be hard to time. If you sell in a dip, you might have to borrow more to buy when prices rise. Be sure to speak to a local agent who has a good understanding of the current market where you’re looking to sell, and where you’re looking to buy.
We’re here to help
If you need assistance with your next home loan, we’re here to help. We have a wide range of competitive Owner Occupied and Investment Home Loans to suit your needs. Get in touch today and make the decision that’s right for you.