The 3 things you should do before buying a home
If you’re in your late twenties you’re probably starting to receive questions about when you plan to settle down, and that not only means becoming a responsible adult but also a homeowner. While the idea of paying a bond towards your own house instead of putting a substantial portion of your income into someone else’s pocket sounds great, there are 3 things you need to consider before buying a property.
- Write down what you would like to do in five-to-ten years’ time
Tony Clarke, Managing Director of the Rawson Property Group, suggests that the first thing you should think about is how stable your life really is, and where you see yourself in five years’ time. “Property is a long-term investment, buying and selling just a short while later is a very easy way to lose a lot of money,” he says. “There are a few exceptions to this rule, usually in the case of off-plan investment purchases, but generally you need to be ready to live in your property for at least five to ten years.”
- Ensure you’re comfortable with your personal finances
The next aspect of buying a home that Clarke advises first-time buyers on is to be in a good space with their finances. He says while you have had financial commitments before, paying a bond is not the same as paying rent.
“I think very few people who’ve never owned a property fully grasp the costs involved, and I’m not just talking purchase price and all the associated fees. It’s rates, taxes and levies, which go up on a regular basis, it’s ongoing maintenance to keep things in good shape, it’s insurance and emergency repairs, and a thousand other small extras,” he says.
- Get going with your bucket list
Clarke says because you’re not going to have as much disposable income for a few years after buying a home, and because it will be difficult to just pick up and travel, “if you can, it’s a good idea to try to tick off a few of your bucket list experiences before you commit to homeownership so that you don’t feel like you’re missing out down the line.”
