Buying property is the biggest purchase you’ll ever make. You know that feeling of buyer’s guilt? That’s not something you want to follow a house purchase. But it’s not always as simple as buying when there’s money in the bank.
Listen to what your body’s telling you. Does it feel right when you imagine life in your own home? When you look at houses, are you excited or stressed out? Your gut will be able to tell you whether you’re emotionally ready for the commitment. This is something that many prospective buyers don’t consider, but it’s extremely important.
Then, there’s other things that help you decide whether it’s time to start looking at suburbs and homes. Use these three metrics to get you in the right headspace as you start your search for a house for sale in the Adelaide Hills.
1. You have savings or a steady income
That bank account you’ve been growing for years for ‘your future’ is now in five digits. You’ve finally got a pay rise and your income has been steady for many years. Maybe you’ve gone through an expenses ‘spring clean’ and dramatically reduced your living expenses.
If you’ve got the cash to play with, consider entering the property market. Think about whether you want to live in it or start with an investment property. This will depend on your current living situation, the size of the property and location. We can help you find a house for rent, as well as to buy.
2. You have clear financial goals
Financial freedom and the great Australian dream go hand in hand. You can have the white picket fence, big backyard and fulfil that goal of home ownership, all while investing in your future. Investing in property can create a residual, passive income – like few other investments.
Speak to your financial planner to help determine the best mortgage amount, so you can maintain your current lifestyle and set yourself up. If you like the idea of gradually accumulating wealth over a long period, this will change where you buy. Know your end goal and work backwards. If you’re unsure where you stand financially, book an appointment with one of our real estate agents – the Adelaide Hills market is always changing and so will your down payment requirements.
3. You have equity in your mortgage
Already own property but tossing up whether to grow your portfolio? You’re getting by fine with one house and you don’t want to stretch yourself – but adding another property is smart in the long-term. What most people don’t know about house #2, #3 and so on, doesn’t require a lot of extra cash.
You can tap into existing equity of your home to help secure finance for that purchase. It works in one of two ways: you’ve made regular payments towards your current house and built up equity, or your current property value has increased over time (with equity expected to rise, too). Instead of leaving the equity to grow, you can use a portion of it towards securing a new home. Loan equity can be calculated through a simple mortgage refinance.
If you’re nodding your head to any of these points, you could be ready to invest (or reinvest) in property. Ask us, your local team of real estate agents.