When buying your first apartment, there are important factors to consider before you take the plunge.
While it can be exciting to picture you or your family living comfortably in your dream home, it can also be overwhelming when considering the finances involved, decisions about location and your must-have amenities.
Before you start looking, it important to consider the below:
Your finances This should be your first consideration. Hopefully by now you have been saving for a down payment and have an idea of what you can afford. That is the first step, so make sure you know your ballpark.
Since most of us can't afford to pay for an apartment up front, you'll need to discuss getting a home loan with a broker. And if you're a first-time buyer, keep in mind that there are government grants available for new home owners in most states.
Once you figure out how much you can spend on a mortgage, remember that there are other ongoing costs related to your new home. These include home insurance, council rates and utilities. You will also have to factor in a one-time payment in stamp duty, which is a tax imposed on specific transactions like leases and mortgages, which varies by state.
It's important to ensure you have enough money saved to cover these costs. It's also a good idea to pay off any debts before applying for a loan, as you will be more attractive to lenders without debt.
The location of your property When looking for an apartment, location is another important consideration. You will be living in your new neighbourhood and apartment building for a few years, so you want to choose a location that appeals to you in a variety of ways.
These may include:
Nearby activities, like parks and restaurants
Neighbours that are similar in age
If you have a family, you'll want good schools or recreational facilities close by
Easy commute to work
Before you start looking for places, you’ll also want to make a list of your must-have in a home. How many bedrooms do you need? How many bathrooms? Do you have to have a dishwasher? In-unit laundry? Walk-in closet? Be realistic but know what matters the most to you before you view apartments.
If you’re looking to purchase an apartment and need help with your finances, contact our experienced team of mortgage brokers today.