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Congratulations! So, you've decided to buy your own home. But what sort of home do you need and what type of lifestyle do you want your home to provide? It all sounds simple enough, and it is. However there are many things to keep in mind when buying your home, not only based on what you need now but perhaps also for the future. To help you decide, we've created this handy checklist. It will help you to make the right decisions and give you some useful ideas. So, before you go out and buy your dream home, please check out the tips below.
Owning a home of your own means added responsibilities. There are a number of responsibilities to consider when purchasing your own home;
- Loan repayments – You are entering into a contract to repay the mortgage at an agreed level of repayment. It is essential that you adhere to these repayments.
- Rates – You will now have to put money aside for upcoming rates from both your local council for the land rates and also from the Water Authority for your water rates.
- Insurance – A condition of your home loan is that you always have your property insured. Therefore you must also factor in a premium for home insurance into your budget.
- Maintenance – It is now your responsibility to pay for the maintenance on your home. Things such as hot water systems, plumbing and electrical can be quite expensive if they require repair or replacement. It is therefore a good idea to build up a cash reserve so that you are able to pay for any maintenance your home requires.
- Finally, the “up-keep” of your property. You should take pride in your home and ensure it is kept neat and tidy.
Many of us have an idea of the type of home we want. However, often there can be far too much too choose from and far too much information that can be overwhelming. So here's a helpful tip to keep you on track. Make what is called a 'Mood Book'. This is a scrapbook full of images of things you like about a home, cut out and stuck in for future reference. Things like you'd find in new home magazines or advertisements. It may include pictures of a kitchen you like, window styles, paint colours, floor coverings and gardens. It doesn't have to be exactly what you may end up choosing, it's just to create a 'feeling for what you're looking for'. And if you decide to build a new home, it will be a helpful tool to use in discussions with your builder.
When you buy your home you decide such things as:
- the town or suburb in which you want to live
- whether you will care for a large garden or a small one
- whether you will live near a primary school and/or a high school
- whether you will be close to shops or public transport
- whether you have a large house or a small one
- whether you need to be near sporting, medical or social facilities.
You will also decide whether to:
- buy an existing house or unit
- buy a block of land and build a new house
- buy a house and land package.
You need to know:
- whether you are eligible to receive a Western Australian First Home Owners Grant
- how much deposit you have to pay
- how much you can afford to borrow [which might be less than the amount you are able to borrow]
- whether you want a smaller loan so that you can either make smaller repayments or repay the loan more quickly
- what additional costs you have to pay
- what will be the main costs of running your home, for example, gas, electricity and maintenance
- whether you will have to pay for emptying septic tanks or for connection to deep sewage
- how you will save money for council rates, water rates and insurance
- whether you have to budget for a growing family, a new car, furniture or school expenses
- how your home loan expenses will fit in with your other expenses.
- Look at a number of homes first
- Resist the pressure from sales staff who encourage you to sign quickly
- Do not be rushed into decisions about which home or which builder.
- Discuss any offer you make on an established home with your real estate agent
- Negotiate, you do not have to accept the asking price
- Check out similar homes selling in the area for their value to ensure you paying a fair price
- Make sure that conditions in your offer are clear
- When the owner signs the offer it becomes a contract binding on all parties
- Ensure any offer is made subject to finance from Keystart Loans Limited
- Sign only one offer at a time
Many builders can help you through the process of selecting the right home.
Deal only with a reputable builder, if in doubt, check them out with the Masters Builders Association (MBA) and the The Housing Industry Authority (HIA).
- Do not sign anything until you have read the small print
- Get the Department of Consumer and Employment Protection booklet, Building Your New Home, and use it as a checklist for the things you have to do
- Also read the Department of Consumer and Employment Protection pamphlet about the GST
- Work out a total budget. As well as cost of land and cost of building, include such things as valuation fees, legal fees, stamp duty, rates, taxes, settlement agent fees, site works, furnishing costs, landscaping and moving expenses
- The State Government's Sustainable Energy Development Office and the Commonwealth Government are currently providing incentives to encourage West Australians to install solar hot water systems. For more information call the Energy Smart Line on 1300 658 158 or visit www1.sedo.energy.wa.gov.au.
- For information about the Commonwealth Government subsidies visit http://www.orer.gov.au/about/contact.html.
- Keep a careful record of all contracts, plans, payments and other documents
- Discuss progress with your contact person in the builder's office
- Check on-site work regularly and talk to the builder or the builder's supervisor on-site if you can.
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