When to set your budget

It is rare that I meet a buyer who can afford everything they want in a property, and have a realistic budget.  We all seem to want more than we can afford! It’s human nature. Usually something needs to give and it ends up being either the location of the characteristics of property (size or condition).

However, quite often the budget buyers set for themselves is a little arbitrary. Neither based on the market nor on the limit of what they could afford, rather it is what they want to spend and they hope that it will be enough to get them what they want. 
This is one of the reasons why internet searching on its own is not sufficient research.

Properties look great online, as real estate agents typically pick the most flattering photos!

So on the surface it looks like you can get a lot for your dollar. It’s not until you physically inspect houses that you get a sense of such elements as room sizes, ceiling height, natural light, general state of repair and, possibly most importantly, the neighbourhood.

Then disappointment sets in and you realise you have to readjust your budget. If the market is fast moving, as is currently the case in Sydney, you need to do this quickly. Because every delay is actually costing you more money as prices continue to increase and you start to chase the market.

 

Further reading:-

Why knowing your financial position can save you money

In a rising market time = money

 

First published:- 9th Sept, 2015

DISCLAIMER:

Please note:

Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.

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