Buying a home is one of the biggest financial decisions you'll make in your lifetime. As a public servant, you have certain advantages when it comes to securing home finance, but proper property research remains crucial to making the right choice. Understanding how to research properties effectively can save you thousands of dollars and help you find the perfect home for your needs.
Understanding Your Financial Position
Before diving into property research, it's important to understand your borrowing capacity. As a public servant, you often have access to home loan options with favourable terms from banks and lenders across Australia. Many lenders view public service employment as stable, which can work in your favour when applying for a home loan.
Consider these key factors:
• Your current financial situation and monthly expenses
• How much deposit you have saved
• Whether you'll need lenders mortgage insurance (LMI)
• Your preferred loan amount and loan to value ratio (LVR)
• Potential interest rate discounts available to public servants
Location Research Fundamentals
When researching potential properties, location should be your starting point. The property market varies significantly across different areas, and understanding local trends will help inform your decision.
Key research areas include:
• Employment opportunities and proximity to your workplace
• Public transport links and commute times
• Local schools and educational facilities
• Shopping centres, medical facilities, and recreational areas
• Future development plans that might affect property values
Financial Considerations and Costs
Property research isn't just about the purchase price. You'll need to factor in various costs that come with buying a home:
Upfront Costs:
• Stamp duty (which varies by state)
• Legal and conveyancing fees
• Building and pest inspections
• Loan establishment fees
Ongoing Costs:
• Council rates and water charges
• Home insurance premiums
• Maintenance and repairs
• Strata fees (for apartments or townhouses)
When calculating home loan repayments, consider both variable interest rate and fixed interest rate options. A fixed interest rate home loan provides certainty over your repayment amount, while variable home loan rates may offer more flexibility.
Researching Property Values and Market Trends
Understanding the local property market is essential for making an informed purchase. Research recent sales in the area to get a sense of whether properties are selling above or below asking price.
Useful research methods include:
• Checking recent sales data for similar properties
• Attending open inspections to get a feel for the market
• Speaking with local real estate agents about market conditions
• Reviewing online property platforms for price trends
• Considering seasonal variations in the market
Getting Pre-Approved for Your Home Loan
Before seriously looking at properties, it's wise to get pre-approved for your home loan. Home loan pre-approval gives you a clear understanding of your budget and shows sellers you're a serious buyer.
The application process typically requires:
• Recent pay slips and employment contracts
• Bank statements from the past three to six months
• Details of your assets and liabilities
• Identification documents
As a public servant, you may have access to a streamlined application process with certain lenders who specialise in public service home loans.
Property Inspection Essentials
Once you've identified potential properties, thorough inspections are crucial. Don't just rely on photos or brief walk-throughs during open inspections.
Consider these inspection points:
• Structural integrity and any signs of damage
• Plumbing, electrical, and heating systems
• Natural light and ventilation
• Storage space and room layouts
• Outdoor areas and their condition
• Noise levels at different times of day
Understanding Home Loan Features
When researching your home loan options, consider features that could benefit your situation:
Offset Account: This can reduce the interest you pay by offsetting your savings against your loan balance, potentially building home equity faster.
Redraw Facility: Allows you to access extra repayments you've made on your loan.
Flexible Repayment Options: Some loans allow you to make weekly, fortnightly, or monthly repayments.
Making Your Decision
After thorough research, you'll be in a strong position to make an informed decision. Remember that the home loan interest rate is just one factor – consider the overall package including fees, features, and service quality.
As a public servant, you may have access to special interest rate discounts or reduced fees with certain lenders. Home finance and mortgage brokers who specialise in public service lending can help you access these benefits.
Thoroughly researching properties takes time and effort, but it's an investment in your future. The more informed you are about the property market, financing options, and the specific property you're considering, the more confident you can be in your decision.
Whether you're looking at a variable interest rate or fixed interest rate home loan, or considering the benefits of an offset account, proper research will help you make the right choice for your circumstances.
Call one of our team or book an appointment at a time that works for you to discuss your property research findings and explore the home loan options available to public servants.
