What to Ask Your Financial Planner Before Buying Property

Hi all. Found an excellent article that I am sure many will relate to. Hope you get something useful out of this...

Jumping head first into the world of property isn’t something anybody should take lightly, especially with such a volatile housing market hanging over our heads.

First home buyers in particular are vulnerable to the pitfalls of property. With endless things to remember, it can be a mission to even work up the courage to get the ball rolling towards a secure housing future for you and your family.

However, it’s not all doom and gloom. The vibrant (though perhaps somewhat inflated) Australian housing market proves that it’s only too possible to get started. A financial planner is a great way to get professional advice on all things financial, and that includes buying property. But, it’s important to get the right advice and ask the right questions to make sure you’re as well informed as possible.

Here are five important questions to ask your financial planner before buying your first home.

Can I afford this property?

This may sound like an obvious question. After all, no one on a fast food wage is going to be looking at million dollar properties – we all have a basic idea of what we can realistically afford. However, it’s still something you should be questioning long and hard, and not just what you think you can afford in your own mind.

Which mortgage best suits me?

There are different types of loans for different situations, and choosing the right one is important. Fixed and variable rate loans both have their associated risks and rewards, but they aren’t made equal.

Many first home buyers like the idea of variable rate loans, as they open up the option to make greater repayments if the opportunity arises. Variable rate loans also often have a lower rate of interest than their fixed loan counterparts, but that can change very quickly if the reserve bank were to raise interest rates. Whether that happens or not is hard to predict…

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Thanks,

Darren