It is called the Australian dream, buying a House. Currently, home ownership in Australia is at peak. Australia's home ownership rate of 70 percent is among the highest in the world.
According to the Australian Bureau of Statistics, the average value of a purchased home in Australia is $650,000 for first-time home buyers, and $800,000 for changeover buyers. If you're a first time home buyer, you may be eligible for a First Home Owner Grant.
There are several steps involved in getting a “mortgage”. It starts before you pick the House. Selecting a mortgage lender is the earliest, and perhaps the most important step of buying a property in Australia. It will ultimately determine both the price range you will be focusing on, the features of a home you will be looking for, and the most important factor of all Location Location Location. By doing extra research in the preliminary stage, you are more likely to find a home in your desired location because having a definite price in mind will focus your house hunting exercise.
Choosing a Home mortgage that will work with you to provide you with the best rates and fees possible will help you determine how much you can afford to spend on your new home. Often, this step is best done with the help of online research tools and leading independent mortgage resources.
Once you have selected a home mortgage provider, they will work with you to prequalify you for a loan. This process could take from couple of hours to a week. They will determine how much you can afford to spend and re-pay them. The pre-qualification is not the same thing as approval, but rather, a guideline that gives you a dollar amount that you should qualify for given the information you provided. Only after these two steps you can exercise your property hunting.
When you have found the home of your dreams, your mortgage broker will be able to give you an advice on the next steps.
After making your offer, the process of actually obtaining your loan should be straightforward and speedy considering your have been prequalified. By doing some extra research in the preliminary stage of property searching and by taking advantage of current developments in today’s booming market such as the First Home Owner Grant, you can move into your home sooner, with less hassle and with a better mortgage.
Where Should you buy? This is a very interesting question. Think of your job situation, whether you are renting or buying a house, what type of weather do you like, and where your friends’ community is.
Usually, you should expect to pay 3-6% of the total value of a property as its well deserved rent. So, if you want to live in an exclusive area, say for sake of a good school catchment area, you might even pay 3-4% of the total value of the property as rent. In such case, renting is more economical as you can operate you 1 Million dollars, for example, to generate 15-20% income and pay from that income your rent in the exclusive area.