Importance of taking your time when buying a home
Purchasing your first home is a big decision and an even bigger life-changing event. For many, it’s the first step on their journey towards their life goals and asset growth, but it’s a choice that shouldn’t be taken lightly.
With Australian home prices skyrocketing, it’s normal to want to jump into the market as soon as possible. It’s expected that the median house price will be over a million in every major capital by the start of 2028, if not earlier.
With capital-city home prices nearing record highs, more potential buyers are starting to look towards the regional housing market. As such, cities and communities in regional and outer Victoria, such as West Gippsland, for example, are becoming more popular.
Before you go running into the regional housing market, it’s important to understand the importance of inspections. Googling services like building inspection in Victoria and surrounds can end up being the difference between buying your dream home and a dud.
Why are regional markets booming?
When it comes to the Australian housing market, affordability is becoming a massive factor for potential buyers. Recent PropTrack data, a property price tracking tool, reveals that the fastest-growing Statistic Area Level 4 (SA4) regions in each state are all priced well below their capital city counterparts.
Regional suburbs are becoming popular because buyers can get better bang for their buck. Additionally, the market is less competitive than capital cities, and it’s still possible to access most amenities.
The COVID-19 pandemic also had a significant impact on the job market. Working from home became the new standard, and it’s become normalised in today’s society. Data shows the pandemic’s rise in remote work reduced trips to Melbourne’s CBD by 66 per cent and Sydney by 61 per cent compared to pre-pandemic levels.
Remote work has made it possible for people to consider purchasing a home and moving to regional and rural parts of Australia without having to give up their livelihood and search for another job. It’s a massive benefit, contributing to the growth of regional housing markets.
The home buyer’s checklist
Buying a home is a multi-step, complicated process at the best of times. If you’re looking for ways to make it less confusing, our checklist below can help.
Talk to a home lending specialist: It’s never too early to talk to an expert, and usually, they’re obligation-free and can come to you.
Check your credit score: Your credit score can impact how much you can borrow when applying for a home loan. You can check your score with Experian, Illion, and Equifax.
Sort out your deposit: Generally, you’ll need to have 20 per cent of the value of the property saved for a deposit. There are schemes that allow for lower deposits, or a guarantor can help you with the rest.
Apply for a conditional pre-approval: Having a conditional pre-approval shows real estate agents and sellers that you’re serious when making offers.
Hire a settlement agent: You’ll need a conveyancer or a settlement agent to help with all the legal contracts on your behalf and sort out the settlement process.
Make an offer: Once you’ve got your conditional pre-approval for a home loan and deposit ready, it’s time to get out there and formally make offers.
Arrange a building and pest inspection: Before buying a property, it’s crucial to arrange a building and pest inspection. This will give you insight into the property’s true condition. If there’s any issues that haven’t been disclosed by the seller, you can use them to negotiate.
The importance of building inspections
Industry experts have reported that frustrated buyers are now ignoring unfavourable building and pest inspections just to enter the competitive housing market. While it’s understandable to want to get into the market as fast as possible, ignoring or forgoing inspections altogether can have dire consequences.
One Sydney-based professional building inspection company found that despite an increase in inspection reports, not all buyers were heeding advice and rushing in. Building and pest inspections are crucial when buying a property. Not only do they provide peace of mind, but they also:
- Identify hidden issues
- Can be used to negotiate a better price
- Avoid costly repairs, as you know the true condition of the property
- Protect against future pest infections
- Ensure compliance with regulations
Common housing issues
A professional building and pest inspection will help you identify any potential issues that may not be visible to the untrained eye or without specialised tools. If there are any issues found within an inspection, it can be used to negotiate a better price or ask the seller to cover the costs for repairs.
Common housing issues that can be found during an inspection include:
Structural movement: Structural movement refers to when the house is shifting, settling, or flexing its foundation and frame. This can result in issues such as cracks, stuck doors, or bowed walls. In some cases, this can turn into a serious safety issue.
Pest damage: Pest damage, such as termites and rodents, costs billions of dollars in structural damage annually. In addition to damaging the property, the pests can also pose significant risks to the occupants. It’s estimated that one in three Australian homes is impacted by termites throughout the property’s lifespan.
Moisture problems: Excessive moisture can cause structural damage and cause health issues. For example, it can draw in pests and also cause the growth of mould.
Ageing materials: The last thing you want is a house that’s on the verge of collapse. An inspection can check if any parts of the house are ageing, such as the walls or piping, so you’re informed before moving in.
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