Housing prices across major capital cities rose an average of 2.3 percent for the first four months of this year. The data is far from conclusive but the upwards trend points to a growing market.
Perth, WA (PRWEB) June 04, 2013
Emerging data suggests record low interest rates are beginning to take effect in the Australian housing market.
Rates were recently cut to 2.75 percent by the Reserve Bank of Australia (RBA) in an effort to further spur the economy. And the data from RP-Rismark is certainly encouraging.
It also means for good news for those that buy now.
Andrew Wilson, chief economist for the Australian Property Monitors (APM), expects housing gains of 3 to 5 percent throughout 2013 and gains of 5 to 7 percent for 2014.
Those that buy into the market stand to benefit significantly as the market begins its upward trend. But the whole ordeal of buying a home can be daunting, especially for those new to the property market. Which can easily lead to a host of anxiety without proper preparation.
The following are tips for buying a home in Australia.
Mortgages rarely get approved without a solid financial history. Expecting to receive approval on a loan without any savings is fruitless. Potential borrowers must first be able to prove their ability to pay back their loan.
And they must also be able to cover initial costs associated with purchasing a property from the down deposit, closing fees, filing costs, lenders mortgage insurance and more.
Being able to cover these costs can often mean the difference between receiving approval or a rejection letter.
Lenders simply cannot approve every application that comes their way. A certain set of criteria must be met before a lender can even consider giving a loan. Credit scores and employment histories are looked at in complete detail to assess creditworthiness.
But another important factor is debt relative to income. Potential borrowers who are drowning in debt or struggle to make payments on time are likely to have their applications rejected.
Taking the necessary steps to reduce debt as much as possible before applying for a mortgage will improve chances of approval.
Most first time home buyers make the mistake of searching for homes without knowing how much they even qualify for. The first step to homeownership is to obtain pre-approval for a home loan. This essentially means that a lender has agreed to lend a certain amount after careful analysis.
This document is also important as it gives leverage for negotiations if the seller is looking to sell quickly. Prepare all necessary documents before meeting a lender including bank statements and employment records.
Find a Good Real Estate Agent
Always take the time to find a qualified realtor who is able to lay out all options in a clear manner. This will save a tremendous amount of effort in terms of time and money. It also means knowing exactly what to expect as the entire home buying process is anything but simple.
About Aveling Homes
Aveling Homes is an award winning home builder based in Perth dedicated to providing exceptional service. Find out more about our display homes and our house and land packages by contacting one of our representatives today.
Visit the Aveling Homes website at http://www.avelinghomes.com.au for more details about our services and available financing options for first time home buyers.
Aveling Homes Contact Information
24/7 Metro Sales: (08) 6144 1000
24/7 Sth West Sales: 6144 1001
South West: southwest(dot)avelinghomes(dot)com(dot)au