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Things to consider while buying a home or an apartment

Things to consider while buying a home or an apartment

People around the world have different tastes and preferences. If you are planning to settle in a city as there are always job opportunities, better education for your child, etc., you may buy an apartment in the city. But if you love to be in nature and prefer living in a suburb, you should buy a home there. There has always been a long debate over which one to choose, but both these things have different pros and cons. In this blog, we are going to talk about it and by the end of the blog, you can very easily judge by yourself.

As everyone looks forward to getting a loan at this point. We are going to discuss some very essential parts of this deal to make your decision a perfect one. Take a look at these factors to get a clear idea about your future deal.

  1. Money, place, and your lifestyle are the first things to consider:
  • Money is the first thing to consider before buying anything. Buying a home or an apartment doesn’t require a one-time investment but you have to spend money while maintaining your daily life there. After buying the home if you find the daily expenses to be more than your budget, this deal is going to be a mess.
  • The price of the apartment or homes are completely dependent on the place. An apartment in the typical city of Australia like Sydney can cost you around $60,000 (one bedroom) but you can buy a home having 5 bedrooms for the same price if you are planning to settle in the regional NSW. So, you have to choose the place accordingly.
  • Then comes your lifestyle. Everyone has his own way of spending his life. While making a choice for a new home or apartment, you have to look at the locality. Consider the basic facilities like transportation, medical care, and schools, etc.
  1. The situation of the building:
  • There’s a lot to consider when it comes to analyzing the structure and age of your building. First, you should look at the basic facilities like the situation of the doors and windows. Shutting the doors and windows happens very often daily, if you have any trouble with that, it could be a nightmare. Then you have check whether there are any leaks from the roof or anywhere. At last, test the quality and age of other materials like furniture, etc. Sometimes people buy homes at a low cost but and then, they invest a heavy amount on the renovation, this is definitely a bad idea.
  • Go through the rules in that area. There are various places where the residents don’t have full authority to repair their homes.
  1. Beware of the fees that you have to pay:
  • After you have bought the home, there are several costs that you have to pay like insurance and maintenance costs. But these costs vary to the specific needs of the owners.
  • Insurance is for the home as well as the materials in that home. The cost of the insurance for your belongings depends upon the cost of your belongings.
  • If you buy an apartment with strata title, the same authority will cover the insurance where you pay your strata fees.
  • In case you are not aware of the strata fee, you should know that strata fees are paid for the maintenance of things like gardens, pool areas, and waste management.
  1. Identify the chances to add value to the house/apartment:
  • An apartment is cheaper as compared to a house. That is the reason why most of the people prefer to buy apartments instead of a house.
  • If you have a home, there are a variety of renovations that you can make. And all these changes will help in increasing the value of your asset in the future. You should consider it as an investment.
  1. Check the subsidies, grants, and other incentives:
  • There are several incentives available for first home buyers. Especially in the time this pandemic, there are several grants for the first home buyers in Australia. It would be a wise decision to check these out.

Conclusion:

There are a lot of things that you should care about while buying your first home. But these are the five things that you should care about in the first place.

10,000 more places now available for the first home buyers under the First Home Loan Deposit Scheme

The first step under this scheme was taken on January 1, 2020, when the Federal government provided enough space for 10,000 homes. Now 10,000 more spots have been made available for the first home buyers in the fiscal year 2020-21. Under this scheme, the buyers will get the benefit of getting the home on minimum deposits.

This scheme is called the First Home Buyer Deposit Scheme. Under it the first-time buyers can get a new home by paying only 5% of the total amount. And the government of Australia has become a guarantor for the other 15%  of the total money. But one thing that you should keep in mind is that you have to pay the remaining 15% in the future. The Government is just helping you to borrow 95% of the property value from the lender.

This step from the Federal Government is a nice one for the people of Australia but a recent survey has revealed that 8 out of 10 people in Australia are not clear about this scheme and they don’t even know whether they are eligible for this scheme or not. With an overflow of such schemes in the market, the first-time buyers of Australia re suffering from information overload.

The interest rates are at lowest, property prices are also down, and the government is launching new schemes frequently, with all these features combined there are surplus opportunities for first-time buyers to get home. Though 85% of the people who can be eligible of this scheme are not even aware of it.

Buying a new home is the biggest opportunity for the people of Australia and it can be better for those people if we provide them enough information about this situation.

It has now become very easy for the people of Australia to get home and the situation of the Australian market can get better if those people increase their savings. If people are confused about what is better for them and the people of Australia, this would act as an obstacle in taking the Australian economy back on track quickly.

Prices involved in buying property under this scheme:

To be eligible for this scheme, the property that you are buying should fall under this price segment:

State/TerritoryCapital City/Regional CentreRest of State
NSW$700,000$450,000
Vic$600,000$375,000
Qld$475,000$400,000
WA$400,000$300,000
SA$400,000$250,000
Tas$400,000$300,000
ACT$500,000N/A
NT$375,000N/A

 

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