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How and where can I seek advice, suggestions, experiences of common people regarding buying new homes?

We are planning to buy/build our first home in Melbourne, Vic. We are looking some practical advice from common people instead of brokers, financial assistants, etc.

I am looking forward the advice in the following areas:

1. Should we buy a house or not?

2. Is it a right time?

3. Financing

4. Area selection

5. How to check if new and cheap areas re being opened?

6. Can we buy a home of any defaulter?

Any other experience, please.

5. Should we build or buy a ready made?

3 Answers

Relevance
  • 5 years ago

    You buy a house when you know you will be living in an area for at least 10 years. You need to be financially secure and knowledgeable. You also need the deposit plus three months of expenses saved as a cushion to protect you against possible illness or job loss. As a renter you can just move if things go wrong but buying locks you in. Housing is an illiquid asset.

    Older places usually have better house sites as those were built first. Don't be suckered into thinking that you have to spend money before you move if you buy an older place. As long as the roof is not leaking, you can live for years in a place before you do anything. Actually better to do it that way as you will make better decisions. My kitchen was installed in 1962 and is still perfectly serviceable.

    Start educating yourself by using the internet to see what asking prices look like. Spend a full year researching. Visit some properties. Get yourself to the point where you can look at a house for sale and instantly know what it is likely to go for.

    Never buy with someone you are not legally married to. An unwind will bankrupt you.

  • ?
    Lv 6
    5 years ago

    Always buy at least 20% under your max amount. Prices are high now in many places so a housing crash will be stressful to wait through if you max out your financial ability on 1 house.

    Building new is a great idea but sounds like you don't know enough to wade through the many details - plus you WILL pay more for new than a used home.

    Also many issues can arise with a new build - especially plumbing and structural. Older houses are often more stable or if not, will be obvious in an inspection.

    Older building materials were better 50 years ago - particularly lumber and hardwood floors.

  • You are down under so I do not know the particulars there, but always come back to the area you are considering & at different times of the day & night. See what the neighbors are like & the area as the people come & go during the day the area may not be what you think. The internet has a lot of resources & calculators under Personal Finance check them out & put figures in to see what the payments are likely to be with different amounts on down payments. In the USA, the repo houses can be a night-mere and cost more in time & aggravation than it is worth as the person who lost the house put cement in the latrine & vandalized the property, which could cost a lot of extra cash to repair. Good Luck!

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