Buying a home or making a property investment is one of the biggest decision you are likely to make, so it's crucial to take it slowly and be prepared. You might be close to having a deposit prepared and have your eye on a property, but there are other factors to consider too. Here are a few to be aware of.
Have you kept your slate clean?
It's important to set your future finances in order, of course, but have you taken a look back at your financial history? By going back and checking if you have any outstanding power bills from old flats or unpaid credit cards you can save a lot of time and trouble down the line. Clearing your credit history will put you in good stead with the bank when you go ahead and apply for a home loan!
Did you beat the budget?
Now that you've looked back, you can look ahead to future finances – but make sure to look carefully! You should set out a long-term financial plan that includes potential loan repayments, taxes, fees from home purchases, house maintenance and your day-to-day items like commuter costs. Match it up against your income, and that of any partner purchasing property with you. Will you earn enough to get by after all of these costs? You might be ready! Here at Goodlife we've got a wide range of advice products that can help you get this plan sorted.
Leaping over LMI
To avoid lenders mortgage insurance when you take out a loan, you'll need a deposit of at least 20 per cent of home value in most cases – it can take longer to put this together, but the long-term benefits are worth it.
Contact Goodlife if you want to check the boxes and get on the way to homeownership.
Here's to your financial independence!
Daniel Carney
Authorised Financial Adviser / Investment Property Expert