Which district in Melbourne saw the fastest increase? Who is more popular in villas and apartments? Where can real estate double its value in 7 years? Where are large infrastructure projects to be built?
These are probably the most considered issues in the minds of the majority of real estate investors. You must have noticed that you have been careful. All the focus is on the “value-added” of real estate. Some hidden data are often overlooked. Today we are talking about a data that few people pay attention to -“days on market.” Days on market means the number of days a property is active in the market, that is, the period from listing to sale. Why is this data important, because its length determines the price of the property, which is an important indicator for the industry to measure the liquidity of the property?
According to the Real Estate websites, buying the first property is a big deal, but because first-time buyers have insufficient experience, it may be easy to make mistakes. Although making mistakes is natural, a small decision can cause huge losses.
First-time home buyers must be aware that they are easy to make mistakes. From a long-term perspective, these mistakes may affect their purchasing power, loan difficulty and increase costs. The good news is that the despair of first time home buyers has eased in 2016 and 2017. House prices fell for the first time in 2018, with fewer investors competing with first-time home buyers and lower deposit requirements. First Home Buyers Australia said that for first home buyers, this is a turning point. The relaxation of the loan policy means that first-time homebuyers can obtain loans more easily. At the same time, NSW and Victoria have also introduced stamp duty reduction policies, which will help first-time home buyers enter the high-end market.
In order to better help first-time home buyers, I have pointed out 8 major Misconceptions that first time home buyers must recognize.
8 Mejor Misconceptions for the First Time Home Buyers are Following
1. No Budget
First-time buyers must have a clear understanding of their budget before buying a house, and know what they can afford. How to avoid it: Use an online mortgage calculator or talk to a loan broker to learn how many loans you can get.
2. No 20% Down Payment
There are many ways to buy a house if you cannot afford the 20% down payment, but no matter what method you need to purchase Leners Mortgage Insurance (aka LMI), the money may be as high as thousands of Australian dollars. How to avoid it: For first time home buyers who cannot afford a 20% down payment, if they want to avoid paying LMI, they can choose First Home Loan Deposit Scheme. Another option is to let parents provide guarantees for the loan, but this requires careful weighing between the buyer and the parents to understand their respective responsibilities.
3. Don’t Understand Interest Rates
At present, interest rates are at a record low, but things that fall will still rise. And first time home buyers may get a 30-year housing loan, so it is worth noting that the interest rate at that time may be more than double what it was 10 years ago. How to avoid it: First-time homebuyers should understand the factors that affect interest rates so that they will not be blinded when interest rates rise. You can use websites like Canstar to compare loans to understand the rate of interest rate changes to determine whether there is Better loans.”
4. First-Time Buyers Need to Consider
Not only the price, but also stamp duty, house inspection fees, property report fees, transfer fees, legal fees, moving fees, furniture fees, and renovation fees. How to avoid it: Research the additional costs before buying and make sure you have enough funds to deal with any unexpected expenses. You also need to develop a purchase budget and calculate all related costs.
5. Report Cutting Corners
Experts have found that many first time home buyers would cut corners on house construction and pest inspection reports. Some people don’t do inspection reports on house construction and pests in order to save a few hundred dollars. This is one of the biggest mistakes made by first-time buyers. These reports are critical steps. If you don’t know in advance what is wrong with the property, you may have to pay tens of thousands of Australian dollars. How to avoid it: Make an independent house construction and pest inspection report for each property you are watching to understand the status of the property.
6. Missed Grant
The market has changed, and the grants provided by federal, state, and regional governments have also changed. The First Home Owners Grant varies from state to state. How much grant you can get depends on many different factors. How to avoid it: To know what subsidies they are entitled to and how much they can get, first time home buyers should log on to the First Home website to check relevant information.
7. Don’t be too Obsessed with the Interior of the House
Intermediaries are all here to sell dreams. Once your dreams come true, you will find that everything is unsatisfactory. So what first time home buyers need to remember is not to become too emotionally attached to someone because of furniture or design style. House property. When people look at a model house, they may be captured by novel designs and furniture, but they may have to pay an extra 100,000-200,000 Australian dollars if they want to get exactly the same property.” How to avoid: Read the manual carefully, ask the builder questions, and write down what you want.
8. Will not Bargain
Over the years, real estate has been hot, sellers dominated, and now buyers have regained control of the market, so experts said buyers can even bargain over loans. If you don’t ask, you will never understand, so be sure to consult with the lender of your choice and what their best deal is. How to avoid it: experts also said: “First-time homebuyers should take a positive attitude, conduct research on loan projects in the market, and be prepared to negotiate interest rates to avoid losses.
Meet Successful Property Owners
You could also try to meet others who had made the trip that you wanted to do. It was very good but quite demotivating. For a year, many first time individuals stopped looking for new properties because they were scared off by all the bad aspects of being a property owner. But when everything they learned had matured, the hunt was resumed again.
It is also important to show to the bank that you have the support of people with real estate knowledge in their surroundings when things go awry. Owning a property is running a business. You who run a business know that certain specific skills are required to run the specific company you run – the same goes for real estate. If you do not have the knowledge yourself, then you must show that you can easily obtain the knowledge if needed. One tip is to join the Property Owners and attend their education. They have lots of good education to go. At their training, you also get the chance to meet other property owners to exchange.
So here are the misunderstandings that you should be aware about as a first time real estate buyer. If you can follow these guidelines, you’ll surely make a profit while buying your house. These points will now clear up all the misunderstandings that you might possibly have.