As a new home builder, we understand that nothing compares to the thrill of choosing your favourite design and moving into your new home. But, we’ve also been in the industry long enough to know that the process can be overwhelming and there’s lots that a new home buyer may not know. To help prepare, we thought we’d share ten of our insider secrets to keep in mind when shopping around for a new home:
1. If you’re looking for finance, consider a Pre-Approval.
When shopping around for a new home, most people also shop around for a home loan at the same time. There’s nothing more comforting than knowing what you can afford and being reassured that you can choose the house you want with support from your financial institution.
2. Demonstrate Financial Responsibility.
It pays to be conscious of where your money is and how you’re managing it. Lenders like to see a savings history so if you have been saving hard for your deposit, keep good records along the way. Taking on other major loans or signing up for new credit cards in a short period of time may also raise some questions which may include store credit cards so just be mindful how much credit you are acquiring leading up to the purchase of your new home.
3. Budget for More than the Loan.
In determining how much you should borrow, it’s easy to settle upon a maximum figure you can afford per month but there are many other sleeper costs associated with buying and maintaining a home.
For new homeowners, they may not be aware that there may be other rates and levies placed on homeowners not just when acquiring the property but on an ongoing basis so it’s good to do your homework and be prepared so that you can enjoy your new home without any unexpected bills at the door.
4. New Homes Vs Old Homes.
There is the age-old argument of which one is better. There’s always going to be good and bad experiences but here’s a few points to consider. Customising a new home up front is easier than buying an existing home and renovating. New building materials have less of a health risk to old (e.g. asbestos, lead based paints, etc.).
Designs of new homes are also tailored to modern day living where homeowners today enjoy larger kitchens which open to the dining and living room for families and friends to enjoy the space and each other’s company.
5. Try to Leave Your Emotions Out of the Decision to Buy.
You should love the house you buy, at least in theory. But it’s even more important that you go in with a clear head – free of emotion. The most important considerations should have to do with liveability, affordability and long-term investment prospects. If there are things you don’t love about an otherwise very affordable house, you can always make improvements on it over time.
6. Ask Yourself If Size Really Matters.
When comparing two properties that you’re interested in, it’s easy to ultimately go with the bigger house, but this isn’t necessarily a good metric. It could be difficult to sell or rent a larger house, which means you could have problems reselling it down the road. It’s also worth noting that the largest, most expensive house in the neighbourhood tends to appreciate the least. You may get more bang for your buck with a more modest property depending on your own personal goals.
7. Work with Experienced Builders
Building a new home from scratch can be a very rewarding experience. It gives you the opportunity to customize your home based on your tastes. But ask anyone who has undergone this process and they will tell you that this can be a very trying experience. Getting expert advice from an experienced home builder will help to give you confidence and set a firm project plan to minimise on unforeseen hurdles or unplanned expenses.
8. Remind Yourself that You’re Buying More than the House.
Before choosing where to build your new home, get to know the neighbourhood that you plan to move into. A little research will help you figure out whether the location is a good fit for you. Is it far from the market? Is the hospital accessible? Are there any schools nearby? Answers to these questions will not only determine the convenience of living in this new neighbourhood, but also the value of your property in the future both financially and your lifestyle.
9. There is no better Time than the Present.
You can drive yourself mad watching property prices and trying to time your purchase so that you get the absolute best deal possible. Purchasing a house is not the same thing as investing in shares with real estate prices moving slower in comparison. Anytime is a good time to buy and in our current market you can easily take advantage of competitive factors such as interest rates from financiers to promotions with incentives from developers. Our local market also currently sees great trade availability which means you’ll get a quality home built in a good timeframe.
10. Have a look at Display Villages.
Once you have a shortlist of designs you like, drive past or drop in few times (at different times of day). You’ll get a better impression of your new home and you’ll be able to visualise how you want your home to look and feel whether it’s for simply relaxing after a long day, enjoying the company of loved ones or entertaining guests.
If you’re shopping for a new house in Perth, Red Ink Homes can help you build the home of your dreams. Contact us today to learn more about how our process works or to enquire about arranging finance.