How to find a property within your budget

Dream-HomeAfter the recent news that the Sydney median house price has hit $1 million, many homebuyers have been left wondering if they can still afford to get into the property market.

Luckily housing is still affordable in many parts of Australia (including here in Bacchus Marsh) so despite what is happening in central Sydney it is still possible to find a home on a smaller budget, with some financial planning and guidance.

Do you know how much you can afford to borrow?

The first step to buying a home is finding out how much you are capable of borrowing. After you have saved for a little while it’s well worth having a chat to a mortgage broker or a lender to get pre-approval or to at least get a solid idea of how much you can afford to borrow on your income (or what needs to be done before you can afford to borrow more).

Have you considered all the costs of buying?

Before you can get an idea of the types of properties you can afford, you need to take into account other costs involved with purchasing a home such as stamp duty, legal fees and moving expenses etc.

What happens if the properties you want aren’t in your price range?

Once you start looking at properties you might find that the ones you like are just out of reach. If this is the case then you can either keep saving or it might be worth having a chat to your lender to discuss ways that might help you improve your borrowing capacity. For instance, something as simple as cancelling a credit card could help you increase your borrowing limit. If you’ve recently had gotten a pay rise or a work bonus this may have increased the amount you can borrow too.

Be patient 

Sometimes it can take years for someone to find the property they’re looking for. While this may sound disheartening, it’s important not to give up because you never know whether or not your dream home is just around the corner.

The best thing you can do is keep saving and keep an eye on the property market, and eventually you’ll find the property you’re looking for. If you would like to chat about properties in the local area then feel free to get in touch with one of the Arbee Real Estate team.