Many Australians have been taking advantage of the Federal Government’s first home owners grant of $14,000 for a pre-existing home and $21,000 for a new construction home. The offer from the Federal Government is just too good for many Australians to pass up and has provided a way for many people to get into their first home more easily. But there could be trouble on the horizon. Research has shown that in the rush to take advantage of free Federal money one in five new home owners has gotten in over their head and may have trouble repaying their loans.

Mortgage Statistics

According to recent research by market analyst Datamonitor 30% of people who purchased a home in the last year by taking advantage of the first home owners grant are experiencing mortgage stress and 21% of new home owners stated that they expect to have difficulty repaying their mortgages over the course of the next five years. In addition over one fourth of the new home owners are spending more than 30% of their income on mortgage repayment and servicing loans.

Buyers Desperate To Cash In

Many first time buyers are feeling the pressure of the approaching June 30th deadline for the grant. This can lead to a sense of desperation and anxiety over trying to get in under the wire which is causing many first time home buyers to really feel the stress of the situation. The limited number of homes that are available and the rising cost of rent only fuel the desperation of house seekers. This situation has led many first time home buyers to purchase a property that is over their budget and over their head in expenses.

Property Options Australia
Property Options Blog © 2006 - 2009

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You may think that the property prices in Australia are a bit out or your reach, but you may find that you are wrong. Just when it looked like the housing market in Australia was coming to a crawl and getting ready to offer some sweet deals to first time buyers, the news comes in that investors are rushing to the marketplace. This leaves many wondering if they can afford to purchase real estate in Australia after all.

It is no secret that if you are looking for an excellent long-term investment asset, property in Australia is the best choice, just as long as you know where you need to look. More and more people are using a particularly cunning method in order to get their foot in the door.

You may dream of a penthouse on the beach in Port Douglas or overlooking the Sydney harbor; however, you may be held back by your ability to raise a mortgage, or the lack there of, making your housing dreams seem more like vapors on the horizon.

Accepting Reality

The first thing you must do if you ever plan to fulfill a dream of owning a home in the beautiful country of Australia is that you are not the only one who is restricted. Most everyone faces limitations when it comes to what and where they can purchase property. As soon as you accept the reality of the situation that land prices and higher taxes in Australia, you will have a clearer mind to find a better solution and then you will be on your way to owning your dream property in Australia.

Finding A Solution

Look at your budget, make an appointment to meet with a reputable lender and discuss how much money you will qualify to borrow. Once you know how much you can spend, begin to look around the different areas of Australia where there is a greater demand for rental accommodation and you are able to purchase property that will fit your budget.

You may not be able to get that penthouse on the beach right away, but you will be on your way to living the Australian dream.

Property Options Australia
Property Options Blog © 2006 - 2009

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In the last blog post we talked about determining where to look for real estate property and explored using real estate auctions to find you dream home. In this installment we are going to be talking about a couple other ways to find real estate in Australia.

Check Out The Local Listings

One of the first places to check for real estate that is for sale in the area that you wish to buy in is the local paper. This will give you a good idea of what is out there for properties and how much they cost. If you are looking at real estate in more than one area you can purchase multiple newspapers to get a good feeling for what the properties are going for In those different areas. This may help you narrow down your search according to price and desirability.

Once you determine to purchase a piece of real estate property it may also be a good idea to get the assistance of a real estate agent to aid you in your search for property. Look for a Real Estate agent who is registered with the Real Estate Institute of the Australian State where you are looking for your real estate property.

Buying Real Estate The Conventional Way

In addition to using the local paper and hitting up the auctions you can also choose to buy your real estate property in the conventional way. This is probably the most popular way that real estate is bought and sold. The steps to using conventional methods of purchasing real estate are very simple:

• Find a property that you would like to purchase

• Make an offer of what you would be willing to pay for that property

• If your offer is accepted, a deposit can be paid to hold the property until a Contract of Sale is drawn up.

• If, for any reason, you decide not to go ahead with the purchase of the home the deposit is refundable.

• The Contract of Sale will outlive all the terms, conditions and restrictions of the sale. When you sign the Contract of Sale a 10% non refundable deposit is usually paid.

• The contract will undergo the usual round of inspections and searches and once all of those formalities are completed the sale is basically completed.

You can expect to pay an additional 5% of the purchase price of your real estate property in legal fees, mortgage arrangement fees and taxes. Prices will vary from State to State and your real estate agent should be able to give you more approximate figures of what to expect. Whenever you are in doubt be sure to ask any questions you need to until you are completely satisfied and happy with your real estate decision.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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