Deciding to buy a condo in Melbourne can be one of the best decisions you’ll ever make. Not only will you be able to live in the heart of the city, but because condos are typically smaller than single-family homes; so, you’ll save money on utilities like air conditioning and heating. And since condos allow for easy access to public transportation; you can spend less time behind the wheel commuting to work or school and more time enjoying your new home’s many amenities.
Want to Buy a Condo in Melbourne – Here’s How to Do It
Condos are trendy in Melbourne, and apartment investing with Ironfish is one of the best decisions you will ever make in your life. They allow residents to experience living downtown, but they also offer a sense of community. Only a few requirements exist when it comes to buying a condo in Melbourne. So if you’re curious in learning more about these options, here’s what you need to know:
A minimum down payment
Buying condo in Melbourne require a minimum down payment of 5 percent of the total purchase price. However, buyers may be required to put as much as 10 percent down in some cases. Higher down payments will result in lower monthly payments over time.
Most people tend to visit apartments based on price, and then they forget about other essential things that will affect their lives in the future. So, when you are searching for an apartment; always try to find out how much money will be required to provide good living conditions.
Also Read: How to Buy Farmhouse For Sale?
Approval from HDB
Once you have found a property that you would like to purchase; you must first apply for a Housing and Development Board (HDB) housing loan if you require one. You can apply for an HDB housing loan with a bank; but the bank will refer your application to HDB for approval. An approval from HDB is required before banks will approve your loan application.
Once HDB has approved you, banks will usually not approve your loan application without approval from HDB first. In addition, your monthly housing loan installment will depend on the quantum of your approved mortgage and your income level.
Hire an attorney to buy a condo in Melbourne
The next step is to get advice from experts in different fields. You may need an attorney to review the sales contract before signing it. You may also need a surveyor who can determine how much square footage there actually is in the apartment versus what the sales contract claims there is. A real estate broker can represent your interests when negotiating with a seller. Also, help you decide how much money you should offer.
Estimate your income
You should calculate how much money you can put toward buying an apartment. You need to know if your salary is sufficient for this purpose. In most cases, mortgage lenders ask that the borrower’s monthly income be no less than three times the mortgage payment amount. If it is less, they usually recommend that the borrower take on a smaller mortgage and save more money for living expenses and emergencies (for example, 2.5-3 times).
Choose Your Location Carefully
After you’ve researched local market trends, it’s time to decide where you want to buy a new home from a location perspective. This depends on several factors, that includes how close you want to be to work or public transportation; how much you’re willing to spend on commuting costs, and whether the location will make raising kids easier (more schools nearby). Also, consider traffic patterns and neighborhood factors like schools, parks, and access to shopping areas.
Work out how much you can afford to buy a condo in Melbourne
A good rule of thumb is to try a loan that’s equivalent to two times your household’s combined income. Try to restrict your borrowings to this amount – including any mortgage, personal loan, and credit cards. Verify that you can afford what you can borrow by estimating the total costs of your new home over the next five years – including renovation and maintenance.
The final say
Whether you’re a newbie in the property market or a seasoned buyer; you’re probably well aware of how challenging it is to find and buy a condo in Melbourne. With the current population boom and shortage of development sites, apartment prices skyrocket. You’ll have to compete with hundreds of other buyers for a limited number of available properties, and even then; there’s no guarantee that they will accept your offer.
Also Check: Top 5 Tips for Buying Your First Property