It might not be quite hot enough to bring out your two piece and hit the beach, but something that is definitely heating up is the spring property season in the wake of record low home loan interest rates.
Just the way nature intended it, spring is all about excitement and new beginnings, so it’s no surprise the property market is roaring as soon as September hits. But, before you get swept up in the glorious weather, open houses and countless auctions, there are a few things you should prepare before diving in head-first for that big purchase.
We spoke to our Property Expert, Steven Jovcevski, about how to best prepare for the spring property season if you’re in the market to buy:
Get your finances in order
Cut back your expenses before you apply for a home loan. Pay off any unnecessary credit cards or personal loans, reduce credit limits or get rid of them altogether if you can. Shop around for the best home loan interest rates, compare the benefits and update your pre-approval with your lender of choice.
Fine-tune the numbers
Work out your deposit and how much money you need to purchase the property in your sights. Take into account stamp duty and other associated expenses with buying a property. Remember 10% deposit is minimum if you have stamp duty to pay and 5% if you are not paying stamp duty as a first home buyer. Most importantly - be realistic about your budget!
Reassess the market
In Sydney and Melbourne, clearance rates have increased and prices are creeping up in some suburbs. A big difference to a few months back, where prices were dropping steadily. Do your research on prior sales in the area, but expect to pay a bit more than a few months ago, reevaluating previous expectations.
Inspect. Then inspect again
You’ll see a myriad of properties for sale during spring, but make sure that if you find one you like, and see it more than once. Go to as many open houses for it as you can, and to try going at different times, as you’ll get a different perspective for the property from the morning to the evening.