Business

A few home truths when purchasing

THINK AHEAD: Buying a property is likely to be one of the biggest financial commitments most people will make in their life.
THINK AHEAD: Buying a property is likely to be one of the biggest financial commitments most people will make in their life. LUKAS COCH

ENTERING the property market can be very exciting, but it can also be quite daunting.

Buying a property is likely to be one of the biggest financial commitments you make in your life and whether you're a first-time buyer or experienced investor, it's a decision that requires saving, planning, research and, of course, a reliable budget.

Saving for a deposit is the first step in purchasing a property and a workable budget is integral during this process. A realistic budget will help you understand your limitations and identify how much you can afford to spend on a property.

When setting a budget, remember to factor in all the additional costs that come after buying a property, such as insurances, repairs, maintenance, body corporate fees and rates.

Whether you're a first-time or fourth-time buyer, you should discuss your financial profile with your financial institution or mortgage broker to gain a further understanding of how much you can afford to borrow and repay.

Many investors, especially young or new investors, use rental income to support their loan repayments.

It's important for investors to consider that if for whatever reason they stopped receiving regular rental payments for their investment property for a certain period, could they continue to service their loan?

There has also been a recent shift in interest rates for investor loans, so it's equally important for investors to consider potential rate changes when calculating their budget. A 1% interest rate rise from 5-6% on a variable $300,000 investor loan could cost some investors nearly $100 per fortnight more in repayments.

Also, remember that what's important in a property and its location will vary between buyers. Investors, first home buyers and those downsizing will all have different criteria for what they're looking for in a property and community facilities.

Make sure you research the suburbs you're interested in to get an understanding of what properties are available, the suburb median pricing and nearby facilities.

Finally, once you become a property owner, it's important to remain engaged with your financial profile and seek additional support and information in regards to your individual situation if you need it.

For all your banking needs, visit your nearest Suncorp Bank branch or phone 131175.

- Suncorp Bank's Lynne Sutherland, executive general manager of stores and speciality banking

Topics:  buying a home finance talk financial advice property market



No concrete plans for Kybong servo staff

Matilda the kangaroo is at the Matilda Service Station at Kybong.

There are serious fears for 50 to 60 local jobs

Why everyone should do a Roadcraft course

DRIVEN BY SAFETY: Glen Jocumsen with one of the Roadcraft fleet.

'They don't realise their car is that good but they're that bad'

Gorgeous old-timers need love too

Check out these 10 mature animals available at Gympie RSPCA

Local Partners

A prince is sailing around the Whitsundays

Rumours circulating about where the princess is

What's on the small screen this week

Rob Collins and Jessica Marais in a scene from season two of The Wrong Girl.

JESSICA Marais returns in The Wrong Girl.

Playing Tom Cruise's wife was a dream for Sarah Wright

Tom Cruise and Sarah Wright in American Made.

The actress stars opposite Cruise in the action comedy

GALLERY: Fun and fashion at the races

Monica Belz.

Fashion and fun meet at the Gympie Showgrounds

Taylor Swift wipes presence off social media

Singer Taylor Swift has deleted her social media accounts

Social media wipeout prompts rumours of a new album

What's On? 10 things to see and do this week

Judah Kelly will be rocking the Muster stage this week

There's plenty to see and do this week

Swedish TV drama turns up heat

Louise Nyvall stars in the Swedish TV series Farang.

Scandinavian crime thriller goes troppo

New Gympie real estate mag has everything you need

Look out for SOLD ON in The Gympie Times on Wednesday.

The first Gympie edition of Sold On will be out on Wednesday

EXPLAINED: What the 'Costco effect' means for Ipswich

PRICE WARS: A Costco store similar to this one in Canberra, is planned for Ipswich.

Exclusive 'cult' about to change how families do grocery shopping

4800 homes to be built in massive new Coast estate

Masterplanned community full steam ahead - it's not Caloundra South

Open for inspection homes August 17 - 23

Check out this weekend's homes open for inspection.