Australia’s housing market finished 2020 on a high note despite the ongoing COVID-19 threat. The same is true in Sydney, where prices rose by 1.3% over the last quarter of the year.
This is unsurprising, especially because Sydney is a fantastic place to live. It is one of the most beautiful cities globally, and it is home to Australia’s largest economy and a plethora of professional and business prospects.
Are you thinking of moving to the city? Here are some of the many things you need to consider before looking at luxury display homes in Sydney.
Make Sure that You Are Eligible For A Home Loan
Sydney’s idyllic setting comes with a high price tag, but you can always apply for a loan to help you get your forever home. However, before you start your home buying journey, it is best to check that you are eligible for one.
To confirm that you are qualified and to find out how much you can borrow, reach out and talk to trusted lenders. This can help you figure out what price range you can afford and which areas you can visit.
You can also go online and try using free home loan eligibility calculators. They’re simple to use and provide quick results, but you should still double-check with the lender.
Choose Your Lender Wisely
It is important to keep in mind that the house loan market is highly competitive. There are various lenders to select from, so carefully consider your alternatives.
Look at the rates and terms offered by each provider and make sure that you are getting the best deal. You also need to decide if you should get a variable or fixed-rate loan, investment or interest-only loan, and other types of mortgages.
Each loan product and provider has its pros and cons. For instance, many lenders are willing to offer fixed or variable rate loans if you are a regular wage earner. The key is to locate the right loan and lender combination for your specific scenario. It’s only one of the numerous considerations you should make before looking at luxury display homes in Sydney.
Settle All Your Debts Before Applying For A Loan
It is important to sort out your finances first before applying for a loan. This will help you get the highest amount possible from a lender or increase your chances of qualifying.
To do this, pay off large and unsecured debts with high-interest rates. Unfortunately, these types of loans have the highest chances of hurting your application.
You can also try consolidating car loans and other personal loans to assure lenders that you are in a great position to settle them.
Take Advantage of Government Support For First Home Owners
Another thing you need to pay attention to before looking at luxury display homes in Sydney is government support for first-time buyers.
One example is the First Home Owner Grant or FHOG, which offers a one-time payout of $10,000 if you buy or build your first house, townhouse, apartment, or another similar unit.
However, the property must be at least $750,000 in value, not previously sold, occupied, or rented out.