BENEFITS OF YOUR OWN HOME

• 1. You spend money on an asset that grows in value over time.
• 2. A property is a lucrative asset – it always appreciates in value.
• 3. Owning a home puts you in a good financial position for the future.
• 4. You are able to make repairs, alterations to the property and truly make it your own.
• 5. Australia’s lenders are aggressively competing for business – they want to finance your property dreams at a good interest rate.

Consideration of Owing a property

• 1. Purchasing the property isn’t the only expense – consider maintenance fees, bills & repair.
• 2. When property values surge, you may be forced to buy where you can afford and not ideally where you’d like to live.
• 3. Costs associated with buying a property can be significant – Lenders Mortgage Insurance, solicitor’s fees, conveyancing fees, pest and building inspections.
• 4. Buying a property requires a significant deposit, which may take years and considerable sacrifices.

Steps to buying a property

• 1. Plan your budget to see how much you can afford to repay, and set a plan to start saving for a deposit.
• 2. Meet our Red Tie Mortgage broker to discuss your finance options and work out how much you can borrow.
• 3. Work with your Red Tie Mortgage broker to select the right loan for you and request loan pre- approval. Your broker will take care of the application and paperwork.
• 4. Let the fun commence! You now get to search for your new home, safe in the knowledge of how much you can afford to spend.
• 5. Organize building and pest or strata inspection on the home of your choice.
• 6. To buy through a real estate agent, make an offer and begin negotiating on price. To buy at auction, place a bid and hold your nerve!
• 7. Once an offer has been accepted, contracts are signed and exchanged. At this stage, you will pay your deposit, usually 10% of the purchase price.
• 8. You now have a few days to change your mind about the purchase. If you back out, you may forfeit some of your deposit. There are regional differences in cooling-off periods, and if you have bought at auction, you won’t have the option. Auction purchases are final!
• 9. Settlement usually occurs four to six weeks following the exchange of contracts. The keys are handed over, and you are officially a home-owner.
• 10. This is the moment when all your hard work pays off. You can finally move into your new home and get settled. No more renting – you live in your own home at last!