Did you know house prices in Melton have risen to a percentage of 6.4% over just one year?
That is true, the cost of a house in this sought-after Australian suburb has risen gradually.
Making your dream of purchasing that property in Melton a realistic reality requires being aware of the financial aspects and preparing yourself for them.
What we shall see in this blog is how to lay down your factors when buying a house in Melton based on budgeting, savings for a deposit, financing options, and general navigation around the property market.
So let’s start!
1. Save For A House Deposit
One should start by saving for the deposit to be used in purchasing a house. It is normally recommended to be around 20% of the cost price of a property. Even so, most lenders would gladly settle for as low as 10% of the amount. Such savings should not be set forgetting on stamp duty, conveyancing fees, and inspection cost among others.
This is where having another account where you save money towards paying for them will come in handy in monitoring progress. Invest from high interest saving accounts or term deposits to increase your savings.
2. Understand What You Can Afford
Alternatively, it’s recommended to understand finance and know how much you can borrow. Hence, prior to venturing into the property market, must understand how much you can finance by way of borrowing. This amount depends on many factors: , this is your income, your expenses, your debts, and your credit score.
Remember that with modification of the mortgage interest rates it is possible to increase one or another, and to provide for its growth. Install a kind of mortgage calculator to compare the payback value and seek a reasonable amount to borrow.
3. Create A Budget And Stick To It
Develop a complete budget that outlines your income and expenses. This will help you identify areas where you can cut back and increase your savings. Be sure to include all your regular expenses, such as rent, utilities, groceries, and entertainment.
4. Find The Best Home Loan Rate
A lower interest rate can save you thousands over the life of your mortgage. Compare rates from multiple lenders or consider working with a mortgage broker to find the best deal tailored to your financial situation. Even a 0.5% difference in the interest rate can significantly reduce your repayments over time, so shop around for the best offer.
5. Research Home Loan Options
Check out various home loan options available in the Australian market. Compare interest rates, fees, and features from different lenders. Consider factors such as fixed vs. variable rates and offset accounts. Don’t forget to look into government initiatives like the First Home Owner Grant (FHOG) and the First Home Loan Deposit Scheme (FHLDS) if you’re a first-time buyer.
6. Factor In Additional Costs
Remember that the purchase price isn’t the only cost involved in buying a house.
Budget for additional expenses such as:
- Stamp duty
- Conveyancing fees
- Building and pest inspections
- Moving costs
- Home and contents insurance
These costs can add up to several thousand dollars, so it’s crucial to factor them into your financial plan.
7. Understand The Melton Property Market
Knowing the current market trends in Melton is essential. Look at recent property sales, compare prices in different areas, and identify the suburbs that offer good value for money and potential future growth. Check out Explore local amenities, schools, public transport, and infrastructure development in Melton that could influence property prices.
8. Stay Within Your Budget
It’s easy to get caught up in the excitement of house hunting, but sticking to your budget is crucial. If you’ve been pre-approved for a certain amount, avoid looking at properties that exceed this limit. Keep in mind that homeownership comes with ongoing expenses like maintenance, utilities, and council rates.
9. Consider Long-Term Financial Goals
While buying a house, you should also think about your long-term financial goals. Are you planning to have kids anytime soon? Do you think you will renovate or invest in property? So your goals should align with the property you buy.
A house that fits your needs today might no longer meet them five or ten years from now. Consider a property with room for growth or investment potential in order to future-proof your decision.
10. Plan For Repayments And Other Expenses
After you purchase your home, it does not stop there for financial responsibility. Put together a detailed budget on mortgage repayments, utilities, and all other costs such as council rates and insurance. Monitor it for a few months after purchase for additions that might creep in. For that reason, keep your finances stable.
Ready To Buy A Home In Melton?
Planning your finances before investing in a house in Melton will result in a smooth and stress-free process. At Credit Hub, we understand that no two financial circumstances are the same. With our expert advice, tailored loan options, and committed personal managers, we are committed to helping you realise your dream of owning your home. Contact us today for a free consultation to get started on your journey to the comfort of your future home with confidence.
Disclaimer:
The information presented by staff or employees of Credit Hub and its associated companies is provided for general informational purposes only. We do not guarantee the accuracy, completeness, or timeliness of the data or views presented. Audience members should conduct their own research and verify any information before relying on it. Credit Hub and its associated companies are not liable for any errors or omissions, or for any actions taken based on the information presented.