A home to live in or an investment property?
There are some key differences between buying a home to live in and buying it as an investment. For one, you’ll need a slightly larger deposit if you’re buying an investment property (usually at least 10% of the value of the property), whereas you’ll only need a 5% deposit (although a larger deposit is better) if you’re buying the place to live in. If you’re buying as an investment, there’s also a whole bunch of stuff you’ll need to know about capital gains tax and negative gearing. Read more here.
What can I afford?
Before you start searching, it’s important to work out how much you can afford to pay. Read our comprehensive guide, How Much Can I Borrow?
You also need to consider what sort of home you’re looking for: a house, townhouse or apartment, for example. Houses tend to cost more than townhouses and apartments (when comparing property in the same suburb, for instance), however most townhouses and all apartments will be strata title, meaning you’ll need to factor ongoing strata costs into your budget.
Which area should I buy in?
When it comes to choosing the best area to buy in, there’s much to consider. Do you want to be close to work, for example, close to the city, your family – far away from your partner’s family? Proximity to amenities such as public transport, schools, shops and hospitals is also worth considering, as is access to parks, the beach or pools, cafes, restaurants and bars if you’re into that sort of thing; churches if you’re not. These things are important to consider not only to ensure you enjoy living in the area you choose to buy in, but also as a long-term strategy. If you plan to sell your property in the future, or rent it out to others, the things that appeal to you are likely to appeal to others too.
Defer to the experts
As a start, check out industry websites such as realestate.com.au, domain.com.au and real estate agents’ websites. For help with buying property, you can also use a buyer’s agent. A buyer’s agent can look for off market properties that fit within your budget and fulfil your needs. Read more here.
From our blog
Want even more information about how refinancing your home loan could make a big difference to you?
Add these to your reading list.
“All I was doing was servicing my old loan. I didn’t know I was allowed to use the equity to buy other things.”
To find out how to avoid over-committing to a huge mortgage, we’ve sourced tips from someone who’s served time on the other side of the fence – in some of Australia’s biggest banks.
Can’t be bothered switching? Think it’s too soon to refinance? Delve a little deeper and you’ll realise the potential savings are enormous, writes Nicole Pedersen-McKinnon.
uno is an online mortgage broker. The information above is general in nature, and you should always seek professional advice when making financial decisions.
*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rate is calculated on the basis of a loan of $150,000 over a term of 25 years.
** Comparing the mean interest rate of 4.27% among mortgage customers who compare their rate every six months with the mean rate of 4.58% among those who never compare using a $500,000 principal and interest loan over a 30-year period.