Buying a home.

The home buying process can be long and daunting. However, the typical home buying journey may go something like:

1.    Making a budget
2.    Creating a shortlist of what you want in a home
3.    Determine your borrowing limit
4.    Obtain approval in principle
5.    Begin house hunting
6.    Make an offer or attend an auction
7.    Once your offer is accepted, exchange contracts
8.    Wait out the cooling-off period
9.    Settlement
10.    Enjoy your new home

For a deeper look into each of these steps, see our article on how the home-buying process works.

The most recent ABS (Australian Bureau of Statistics) study in 2020 revealed that the average cost to build a house in Australia was $320,238 in 2018-19. However, this can change from individual to individual depending on a number of factors. These factors include, but are not limited to:

• The size of the home
• Timeframes
• Complexity of the design
• Cost of the land

Besides the amount you borrow on your home loan or mortgage, there are several additional costs when buying a house, which can include:

• Stamp duty
• Lenders’ Mortgage Insurance (LMI) if you are borrowing more than 80% of the value of your home
• Legal or conveyancing fees
• Pest, building or strata reports
• Loan application fees

A home loan, otherwise known as a mortgage, is a type of loan designed for customers to borrow large amounts required for the purchase of a property. This loan is usually to be paid off over 20 or more years. 
 

Welcome to managing money with ME.

Get stuck into: Costs when buying 
Let's get started with finance 101. We're looking at working out what you need to buy a home. 

Take some time to pause and read.

Our hot tip is to take notes throughout each topic to really take in the info that best applies to you.
Work out the true value of a property, and take a good note of this handy tip to help you get ahead.
Now let's break down the deposit, and the factors that affect it. Remember to pause and read, there's a great tip at the end.

Let's talk LVR. When you pause to read, have a go at working it out for yourself.
Now onto Lenders Mortgage Insurance, also known as LMI. This one is all about lenders and valuation, pause to take this in.
Stamp duty unfortunately applies to some purchases. Hit the pause button to understand why. Take note of this super handy hint.
It's worth looking into what government concessions might be available to you. Read the helpful tips that could help save you money.
Being prepared for fees makes life easier. Check these tips out. Brokers can really help navigate the process. A quick low down on interest, read up all about it.

Here's what to look for in property inspections. One thing to look out for is rising damp. 
And here's what to look out for when it comes to timber stumps. 
Make sure you check those ceilings! And lastly, make sure you get a pest inspection.
Now let's jump into a case study. Make sure you read and take notes.
The key takeaway here, is to always inspect for no regrets.

That's ME done!