How To Buy My Next Home In 2024?
How Much Can I Borrow?
The initial steps to purchasing your next home are similar to when you purchased your first property. It is essential to speak to us to reassess your goals. There are several factors that can impact your next home purchase, some may include a decrease in income, an increase in expenses as well as your repayment history on your current home. There are also certain factors that can aid your move to your next home such as mortgage portability or a bridging loan.
​
Can I Afford A Bigger Home?
This can often be a worrisome question to next homebuyers as often there may be an increase in expenses if you choose to move. However there are other strategies around living in the suburb you want to. Some of these include using your equity in your current property as a deposit. I know this sounds exciting but first we need to calculate your borrowing power to give you an indication on how you can proceed with the purchase of your next home. Let us help you work out exactly how much you will need to borrow if you don't want to sell your current home.
​
Can I Keep My Current Home As An Investment?
Absolutely! One strategy to get you into your next home is to borrow the deposit from your current home. Which is just like buying a property without using any of your own money! There are also other strategies that can be put in place in order for you to maximise your tax refund and help pay down debt faster. Talk to us to find out today!
​
Do I Need A Pre-Approval?
Just like when you purchased your first home, after meeting with us we will submit your application for a conditional pre-approval. This means that the lender has approved your application with some conditions that need to be met in order to get the final approval or make it an unconditional offer. This step is crucial in order to move on to the more exciting part of the process.
​
Are There Any Government Grants Or Concessions?
Unfortunately there are no government grants once you have already purchased a property in Australia. However, there is a concession available to you if you purchase a property off-the-plan. Off-the-plan concessions can be quite complicated but the basis of them is that you only pay stamp duty on the dutiable value or market value, whichever is greater. The dutiable value of a property is the contract price minus the construction or refurbishment costs incurred on or after the contract date. The dutiable value is often less than the contract price.
​
What Upfront Costs Will I Have To Pay?
Buying your next home comes with a whole new lot of upfront costs but be aware of costs you might not have considered.
If you don't seek the right help, you may be asked to pay the following expenses:
-
Deposit
-
Stamp duty
-
Lenders Mortgage Insurance
-
Insurance
-
Inspections
-
Conveyancing
-
Removelists
-
Borrowing Fees
-
Settlement Fees
-
Connection of Utilities
​
Do I Have Enough For A Deposit For My New Home?
Having a 20% deposit will help you avoid paying Lenders Mortgage Insurance on your next home. However this can be hard to do as you are paying off a mortgage. As mentioned before you can use your current home's equity as a deposit for your new home. Speak to us today to better understand the options available to you.
​
IMPORTANT NOTE
You shouldn’t settle on your current home before you have settled on your next home as this can leave you without a home for a period of time!
​