There are many factors to consider if you decide it’s time to ditch the renting game and buy a home. Photo: Michelle Kroll.
The nation’s capital regularly trends as one of Australia’s most expensive cities to rent in. Due to rising costs of living, plenty of Canberrans are making moves to get out of the tenant game and into home ownership.
For anyone embarking on the journey, here are some essentials to consider from long-time Canberra agent, Col McIntyre.
Start with a clean slate
Make sure you’ve paid off every debt you can before approaching your bank or broker for pre approval. This includes credit cards, personal loans and car finance and even HECS debt, if you can.
“Anything hanging over you could lessen your borrowing capacity,” Col says.
“A good savings history with rent and bills paid on time will also act in your favour with lenders, especially if you’re not looking to make a full 20 per cent deposit.”
That said, Col does think guarantors will become more common for young people.
“The generation of mum and dad were generally able to buy cheaper back in the day, and are now sitting on properties that have doubled, sometimes tripled in price depending on their location,” he says.
“If relying on them as guarantor is an option for you, don’t be afraid to have that chat.”
Consider those extra expenses
Maintenance, utilities, insurance and body corporate fees can pile onto regular mortgage repayments quickly. Do your research before diving in – it could prevent a real headache in the long run.
“Make a conservative budget based on average homeowners in your demographic and the area you want to buy. Stick to it while you’re still a tenant,” Col says.
“This is a great way to figure out whether you can meet extra expenses comfortably.
“It’s also a good idea to allow for a larger savings buffer to cover interest rate hikes or an unplanned plumbing bill.”
Figure out the non-negotiables
Everyone has a different idea of what their ‘dream’ home looks like. How many bedrooms? Does it have an ensuite? Open plan, yes or no?
No matter the dream, sit down and make a list of what you can and can’t live without. If those cathedral ceilings can wait, pass the property over in favour of one with a backyard.
Col has worked across all corners of Canberra real estate for the past 30 years. Photo: McIntyre Property.
Find the right agent
Col says people tend to put the same hat on anybody who works in real estate, but they aren’t all the same.
Consider approaching a well respected agency, preferably one with highly experienced staff who live locally, let them know what you’re looking for and build the relationship from there.
“We all have different specialties, interests and qualifications,” Col says.
“I’ve been in the business for almost three decades now and know southside Canberra like the back of my hand. I’d be an especially knowledgeable resource for anyone looking to buy in Tuggeranong.”
Think first home, not forever home
Buying your first home is beyond exciting, whether you’ve been renting for two years or 20. Emotions can run wild, but logic is key when investing in property.
“It’s highly unlikely that your first home will also be your last,” Col says.
“Of course it’s important to buy a house you can see yourself living in, but don’t be afraid to compromise for something that will rent or sell easily in the future.
“Entry level homes with shops, schools and public transport close by are almost always a safe bet.”
With finances secured, a solid agent to rely on and a clear idea of what you’re looking for, you’re all set to take the leap into home ownership. Good luck!
For a trusted, tried and true approach to property in Canberra, get in touch with Col and the team at McIntyre Property.
Loading ...
