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What You Need to Know When Buying an Apartment

Here are some things to think about when buying an apartment, whether it is 2 bedroom units for sale Wollongong, a studio apartment or another size. Here we cover the rent versus buy choice, how to work out what you can afford and who you should ask for help.

Trying to decide whether to rent or buy

One of the biggest decisions you might be faced with when you are looking to move is whether to rent or buy one of the best 3 bedroom apartments for sale Wollongong has on offer. There are a few things that will impact that decision. How long are you planning on staying in the apartment being a big one. If you are moving in 5 years or less then maybe renting is best. More than 5 years it makes more financial sense to buy. The mortgage payment will be less than rent but you will have to take into account those monthly fees, have a down payment, costs for closing, appraisals, insurance, inspections and such. You cannot borrow the down payment, you will need to have saved that.

What can you really afford?

It also depends on what you can afford and know what your debt to income ratio is will be a big factor in that. This means adding up all your debts, loans, credit cards, child support payments, store cards, alimony and such and add to it the estimated mortgage payments you would be making if you bought that apartment. Then take your income each month and divide the above figure by the income amount. Express the result in percentage form. So if your debt total was $2000 and your monthly income is $4000 you would do $4000 divided by $2000 which is 0.5 and expressed as a percentage that is 50%. 

This amount is important because lenders for 2 bedroom units for sale Wollongong will use that ratio to determine what payment you can afford to be making each month. They prefer that there is a ratio of no greater than 43% so the above example would not be ideal. It is harder to qualify for a mortgage. But you can improve the situation by handling some of your debt, going for a lower-cost apartment or coming up with a mortgage repayment plan that means lower monthly payments. Don’t forget there are other costs like Strata fees, property taxes, and so on each month you need to cover.

Finding experts to help

Whether looking for 3 bedroom apartments for sale in Wollongong or something smaller you would be wise to get the help of professionals. That means finding a licensed real estate agent who knows the area and the costs. They can help with negotiations and answer other questions you might have. You might also want to look at hiring a financial advisor to help with your apartment buying. They can work with you and your estate agent to make sure decisions are in line with your current finances and your future financial goals.

 

Joe Calvin
Joe Calvin is a Blogger and an SEO professional. Co-founder of Bigmixseo, I have 2 years of experience in SEO & 1 year of Successful blogging @ pantheonuk.org. I have a passion for SEO & Blogging, Affiliate marketing, & to invest in high trading stocks. " Sucess is the ability to go from one failure to another with no loss of Enthusiasm."