Buying a property alone can be more difficult than buying with someone else but, with careful preparation and RAMS' 6 essential tips, it's certainly doable.
Buying a property alone can be more difficult than buying with someone else but with careful preparation it’s certainly doable.
Here are some suggestions to get you started:
Remember the costs of buying such as legal fees, stamp duty and removalist charges when you’re saving for a deposit. Don’t forget strata fees, council rates, utility bills, insurance and repair costs when working out how much you can afford in mortgage repayments.
Before you start seriously looking, get pre-approval on a home loan to confirm the amount you can borrow. This might also improve your bargaining position when you come to make an offer.
What would happen if you lost your job, fell ill and couldn’t work, interest rates increased, or if property prices dropped? Consider income protection insurance as it may cover a proportion of your wage if you can’t work due to illness or accident. Get home and contents insurance to cover against property damage or theft.
Saving for a deposit may take longer solo and you may not be able to afford as big a mortgage as if you had someone else to help out. Be prepared to make some compromise to buy what you can afford.
Enlist friends and relatives to look at properties you’re considering and ask for honest feedback. They may see shortcomings or benefits you’ve overlooked. Choose people you trust to give fair and constructive opinions.
Home loan specialists, solicitors, financial planners and building inspectors can provide useful input to your decisions. Also, talk to others who have purchased property alone about their experiences.
You’ll feel a great sense of pride if you do buy a place by yourself. It’s a great achievement, and one that many first home buyers accomplish every year.
Speak to your local RAMS Home Loan Specialist about your home loan needs.