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How to Set a Realistic Budget

It's important that you get a very good, sound understanding of what your money is going to buy you early in the property search, so that you can set your budget. Learn how with these top tips!

Now its human nature, because I tell you what, most people come to us wanting more than they can afford. Follow these tips:

Base your budget on the market.

A really good example of why searching on the internet is not sufficient to give you the information, or real information, in terms of what your money is going to buy you. Now agents put very flattering photos of properties online, and of course you’re only going to be seeing the best aspects of properties and it seems like what great value these houses are. its really difficult, I guess, when the reality hits upon physical inspection, the reconcile that.

Searching is not researching.

Until you actually physically inspect these properties and until you realize what the market is actually paying for properties that you like - you can't benchmark it against what actual budget you do really have. Once you’ve looked at a few properties in the flesh, its time to reassess your budget and adjust it accordingly. And if it can't be adjusted, then you need to look at other things that are variable, such ad the actual property, or the location.

Consider compromising on other variables.

If you’re in a situation where  you do need to adjust your budget up, and you’re looking to buy into a fast moving market, the key is to adjust as quick as you possibly can once you realize your budget isn’t enough. Because if you don't and you delay the decision to up your budget, chances are that delay will actually cost you money in the long run because you'll be chasing the market and when you actually do buy, you'll probably pay more.

Adjust your budget as quick as you can.

The hottest markets in Australia at the moment are Sydney and Melbourne but in Wagga, properties were starting to move quicker and quicker, so its crucial, doesn’t matter what market you’re in, to get a  very realistic understanding of what your money is going to  buy you as early as possible in the search process.


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