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Monthly Archives: July 2018

Buying First Home

Before you start looking for your first home, you will need to be financially prepared by saving a deposit. Generally, saving 10% of the value of your first home is a great target since it meets most lender’s requirements. Ideally that 10% has been saved over a minimum period of 3 months which is known as ‘genuine savings’. Showing lenders you can regularly save means they trust you more to make your loan repayments.

That 10% will be split into 1) your deposit and 2) associated costs. One of the biggest costs will be stamp duty, along with legal costs, strata and building report costs.

It is now time to figure out exactly how much a lender will loan you, and how much you can afford to repay. Financial factors that are considered include, how much you get paid, how much debt you have, your living expenses, your assets and more.

It will also be time to figure out what incentives are available to first home buyers in your state. Depending on the value of your first home, stamp duty might be waived or discounted along with potential first home owner grants.

This is a pretty big step. Choosing your lender and the loan product you like is a big decision. But remember, choosing a loan is not just about the rate. Additional considerations, like if there is a fee to pay off a lump sum of your loan, if the rate is fixed for a period or the availability of offset accounts are all important. And sometimes a slightly higher rate might give you all the additional features you want.

Having a home loan pre-approval means that your lender has given you a conditional ‘thumbs up’ for your home loan. This means you can go out and find that dream home secure in the knowledge of how much you can spend. The pre-approval to aim for is one where the lender has seen proof of your income, debts and other financial factors as this is the most secure.

Home Ownership

Homeowners are likely to live healthier and longer. This hidden perk is anchored on the fact that newly built homes now adhere to standards that promote healthier, more sustainable, and greener way of living. From materials used to the design standards, the occupants are much into reaping better air quality inside the house.

Persons with own house are less likely to develop and suffer from anxiety, depression, and other related mental health conditions. This does not erase the fact that there will still be some percentage, but to some extent conditions such as these are likely to be hampered. First, the owner is relieved from the stress of thinking of when and how to secure a safe shelter for children. Then, the owner is also freed of thinking where children will live in case something unfortunate happens. Also, an own home is a contributing factor towards the effective parent-children relationship.

Children develops self-esteem. While it is true that it is upon the nurturing and guidance of parents that children develop self-esteem, it is also important to understand that aside from toys and other recreation, an own home has a big impact to a child’s personality. His or her self-esteem roots from being proud that his or her parents have actually provided them with a safe and sound home. It isn’t important if the house is big or small as long as it is one that is full of love and understanding.

Homeowners develop a sense of camaraderie among other homeowners in the neighborhood. No man is an island. While privacy is promoted in an own home, it is still good to have other people within your surroundings. Your neighbors is one of them. Friendship will develop along time and this will be helpful in establishing cooperation among neighbors especially in times of unfortunate events, grieving, emergencies, and disasters.

Essentials When Buying Property

Location

One of the most important factors to consider when buying a home is the location. The location is as important as the price of the property. Believe it or not, the location affects how you live later on.

Imagine buying property away fro civilization, how would you suppose to find a good commute to work? Unlike buying aroperty that has good security system, you would surely live at peace and feeling safe every single day.

When buying property, first determine where the location should be that would best fit your needs.

Neighborhood

As important as location is the neighborhood. When you visit the location, try to know the status of the neighborhood and make sure they are friendly and nonviolent. It is important that you are comfortable living with your neighbors. Otherwise, it would be a regret in the end.

You can perhaps talk to the neighbors during your visit and ask them about the people living in the location. Perhaps they can give you better insights about the place and the people living nearby. They can even tell you how safe and convenient the location is.

Price

When it comes to buying aroperty, you can never go wrong asking about the price. The price is perhaps the most significant buying factor for most buyers.

Properties are expensive, therefore most potential buyers would really care to ask about it. So if you are someone who is really planning to buy property, you need to make sure that the price offered is right for you!

Set your budget way ahead of time as part of your preparation. Consider the listings available and look for one that fits best your needs and budget.

If the price is too high for you, that’s alright! There’s still lots of listings you can find.

Get a real estate agent

If you can’t find the property of your dreams, don’t get frustrated yet. What better way to do it than to find a good real estate agent to help you?

Sometimes, it is hard to find property, especially if you have other things to be busy with. Leave the task to a reliable real estate agent. They are professionals who are well acquainted with the entire process, therefore they can be there for you when you need them the most.

With the help of a real estate agent, the entire process could be faster and you would be able to get a good deal right away!

Economic Considerations

1. Tax deductions: Although, for many, especially, those in, so – called, high SALT states/ regions, the tax deductions, associated with home ownership, are less than they have traditionally been, there is still an, up – to $10,000 tax deduction, on one’s federal tax return, for the state and local taxes, we pay, Therefore, when we consider, whether, there are advantages, to buying, instead of renting, this must be factored in. If the net – numbers, of renting, versus, owning, are compared, and if they are close, home ownership often becomes more economically, advantageous, because of the appreciation, and equity, involved, in owning.

2. Mortgage/ mortgage interest: Mortgage interest, up to that paid, on a $1 million mortgage, is still, tax – deductible, so, when one considers, if it makes sense, for him to purchase, this must also be considered. In addition, a wise consumer considers, whether his monthly costs, are within their personal comfort zone, and strengthens, their enjoyment, etc.

3. Local real estate market: While there is, often, much discussion, about the overall, real estate market, every local area, is different, and certain ones, appreciate more, and/ or, depreciate, less, than other areas/ regions/ neighborhoods! One should, carefully, consider, whether, the location of the particular property, is one, which meets your needs, and priorities, desires, before buying, because, unlike renting, purchasing a home, requires far more commitment, than renting, does.