How To Buy An Apartment In Sydney: June 2022 Update

Sydney is hailed to be one of the best performing sectors in the Australian housing sector. In 2021, the Australian housing market experienced approximately 24% price growth. To buy your first home in Sydney, you must be familiar with the current trends in real estate. 

This year, the housing market has dropped by 3.2%. It is expected that the selling conditions will improve when the number of sales falls, bringing significant benefits. 

How to buy your first home in Sydney? 

Buying property in Sydney can be a considerable investment. However, you must consider various factors while purchasing your first property. 

Below are some of the prominent factors that you need to follow while buying a property:

Know your financial situation

When buying a property in Sydney, you need to be aware of your financial situation. It is now when you calculate your current expenditure according to your lifestyle preferences. When you know your financial situation and the amount you can put aside for investment, you are better equipped to understand the type of property you can afford. 

Job security is one of the most important factors to consider. If you have had a job for over 12 months, either full-time or part-time, you can move ahead with buying the property. There are professionals to guide you as well; therefore, it is good to be aware of the different professional packages. 

If you belong to the lower-income group, you will be eligible for Centrelink benefits. You can get a home loan with a specialist lender. 

How much can you borrow? 

Your circumstances can help you understand how much you should be borrowing. Many people consider taking a mortgage while purchasing a property. 

Before you borrow, you should consider reaching out to a mortgage broker. You must know how much you can afford to borrow and make calculations accordingly. 

When considering how much you should borrow, here are some essential factors. 

• You will not be eligible to apply for a new loan if you have bad credit. 
• You can borrow some amount for a deposit from the lenders. However, make sure to submit complete documentation. 
• Low-deposit loans are also available if you do not have a 10-20% deposit. However, before taking the loan, you should know that you must afford to pay the repayments on due time
• It would help if you considered different factors of costs such as lender fees, government charges, and even conveyancing. 
• You will need to pay upfront costs like building and pest inspection, stamp duty, settlement fees, etc. 

Research about the property market

Before you invest in a property, you need to know how it fits into your lifestyle. It depends on how you’re balancing the properties. 

You need to consider the geographic location of the property. If you are a working professional, you need to know the following:

• How many offices are available nearby? 
• How far is it from the central city? 
• How far are the station and community? 
• Are there shopping centers or malls nearby?

You need to choose a location that satisfies all your lifestyle needs. It would help if you considered investing around the suburbs. These suburban areas have the potential to grow, and therefore, you might as well consider investing in these suburbs 

Compare the financial options

Buying a property in Sydney requires proper financial planning. If you want to take a home loan, you will need to consider various factors. These include the following:

• Fees: When comparing home loans, you should be familiar with discharge, ongoing, and application fees. You should choose a home loan that has fewer fees and will help to lower the mortgage cost. 
• Interest rate: You should choose a competitive interest rate according to the market standards. You should choose as low-interest rates as possible. This will play an important role in helping you save in the long run. If you’re applying for a home loan, you must compare the interest rates, which will help you understand the loan amount you’re taking from the bank. 
• Features: Most home loans have a wide range of features that will help you save money. You should consider comparing the loans provided by different lenders. You should check if the lender imposes any penalty or not. If there are split loans, you need to check if there are packaged discounts or not. 

Conclusion

In conclusion, buying your first home in Sydney requires considering different factors. If you’re applying for a home loan, you need to consider reaching out to professionals who can guide you through the process. Sydney can bring a wide range of opportunities for career growth and others. Therefore, when buying property in Sydney, consider all these factors. 

With so many factors to consider, it can be overwhelming. Therefore, a reliable property advisory firm like Quarter Acre can be of great help.