In Nomini Maximus Officium

In the Name of Great Service Your Local Realtor

Step 1. Check Your Finances

When you have made the decision to enter the property market, whether as a first time buyer or seasoned investor, consider your borrowing capacity and the associated costs of acquiring real estate.

Starting out, consider the following when buying property;

  • Affordabilty is essential. Initial enquiry can by made on most loan calculators provided on many real estate and financial websites, including realtywest.com.au.
  • Arrange an appointment with your Bank or Finance Broker to discuss your borrowing capacity in more detail. Be prepared, it is important to disclose all relevent information including current and previous finance facilities.
  • At this early stage, when you have an indication of your borrowing capacity it is also important to get an understanding of what this borrowing capacity means in relation to what your maximum property purchase price can be. This is determined by your deposit savings and/or the equity available in other real estate. Your bank and/or your finance broker will help you understand your overall financial capability.
  • If you intend to move forward, it is now essential where possible to obtain written finance pre-approval on the lenders letterhead. This written conditional approval will be invaluable, particularly if buyer interest in your dream home is strong and there is likely to be a number of comparable offers on the table.

Your bank or finance broker will help you consider the following additional fees.

  • Fees associated with setting up your finance and mortgage.
  • Conveyancing or settlement agent fees.
  • Statutory and/or Government fees.
  • Stamp duty and/or Transfer costs.

Addititional and other pre-settlement costs to consider include;

  • Building and contents insurance.
  • Council rates and Water Corporation rates.
  • Strata levies (where applicable).
  • Pest and building inspections (where included in the contract).
  • Removalist costs.
  • Connection to utilities, including Western Power, Alinta gas and Telstra.

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