For a long-time owning property was the domain of the wealthy. Getting finance and obtaining a mortgage was simply unattainable for the working classes. But things have come a long way in a short time and the property market is very different now to what it was, even just a decade ago. Things have become a lot more accessible to everyone and the way in which property transactions are handled now is also very different. With this in mind, here are a few examples of how things have changed and where they are at the moment; if you re considering entering the market for the first time, hopefully these simple pointers will help allay any fears or concerns that you may have.
Not too long ago you had to get up and go out if you wanted to see what was out there. Enlisting the help of an estate agent was crucial as was the willingness to head out on weekend to view show-houses. Then along came the internet and things changed rapidly. Initially realtors would just put their listings onto their websites, which meant you could go from agency to agency looking at their properties online. But then along came aggregation sites and suddenly everything that was available in an area was all listed in one place. All you now need to do is tick a box or select a drop-down that says ‘property for sale Balwyn’ if that is the area you want to buy in, and it all appears in front of you. And you can order it in terms of price or erf size or time on market. It is incredibly easy, and you only have to arrange an actual viewing if you see something that truly floats your boat.
There has always been a degree of negotiability involved in fixing the price of a house but outside of that there wasn’t too much room to manoeuvre. The estate agent’s cut was fixed, the attorneys charged a standard fee and the banks prices and rates were fixed as well. But the market is a lot more competitive than it has ever been and people are desperate for business. As such they are far more open to negotiation – and you should not be shy to haggle as much as possible. At the end of the day it is a lot of money involved in these transactions and by shaving a couple of percentage points off the interest rate and agent commissions you could be talking a lot of money.
The competitive nature of the finance market as outlined above has seen the role of bond originators suddenly become very important. Instead of having to go to the bank yourself, an originator will approach all the banks on your behalf. They do the hard work for you by shopping around for the best deal and playing the one institution off against the next. Remember that banks make their money by lending it out and charging interest, so they want your business, and the originator, who is paid by the bank that eventually gets the deal, will find you the deal that works best for you.
Posted in: finance & realestate