If you already own property you are probably well acquainted with one of the big decisions that confront buyers early on in the buying process: what exactly do I want?
If you are buying somewhere to live, you might look at existing real estate such as a detached dwelling, an older-style apartment or a new apartment in a large development. These types of properties also appeal to investors.
A holiday house might appeal for its potential to provide long-term capital growth and rental income, not to mention a ready-made holiday destination.
When deciding what you want to buy, consider what works best in your situation, and what meets your financial needs.
Buying off the plan means you might not have to outlay any money for some time. If you are buying a land release or house and land package, you will probably take your loan out in stages, which means you may not need to pay interest on the full loan until building is complete.
When buying an existing dwelling, a deposit needs to be paid at the time of purchase and mortgage repayments begin after settlement has taken place.
Applying for a home loan to buy a unit in a large apartment block may differ from applying for a regular home loan. Speak to your lending specialist to find out more about the type of loan you need.
Ongoing budget considerations differ depending on what type of property you buy. Maintenance, insurance, rates and services go hand-in-hand with property ownership.
Apartments can also attract body corporate fees and sinking fund fees (and these tend to be bigger in larger developments).
Investment properties such as holiday rentals may also have management and promotional costs.
If you are renting out a property, you might be entitled to tax benefits. Talk to your accountant or visit the ATO website to find out more.
You should make sure to factor the relevant costs into your budget.
No matter what type of property you are looking for, doing your due diligence is paramount. This includes researching the area you are thinking about buying into and getting pest and building reports and valuations.
Considering a variety of property options, and weighing up their pros and cons, should help you to work out which one is right for you.
Thinking about buying a property or land release? Speak to one of our lending specialist today.