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As property loans are usually a long term commitment, you need to ensure you have a strategy in mind that places you in a good position to repay that loan. Let’s look at a few key topics to consider in your home buying strategy. Factors affecting the property market Education about the property market is key. There are trends where house prices rise and fall, thus having a sellers versus a buyers' market. If you're in a position to monitor house prices over a period of time this will help you buy at an advantageous time. Factors such as interest rates, economic growth, mortgage availability (or credit growth), supply and demand are all relevant to the Australian housing market. For example, lower interest rates encourages borrowing while a high supply of housing will see a fall in prices. How do you find the right property? Follow the process of questions to ask yourself to help you find the right property. What's your purpose for buying property? E.g. are you after a home to live in or an investment property? Where do I want to buy? Your purpose for buying property will help you answer this question. If you are looking for a family home for example, a property close to shops, schools and transport could be beneficial. When do I want to buy? If you want to buy a home in the next 6-12 months, now is a good time to set up a savings plan and start growing your deposit. How much can I borrow? Using our borrowing power calculator will give you an idea of your borrowing capacity. What will my repayments be? After looking at the prices of a few properties you’re interested in, use our home loan repayment calculator to work out what your repayments will be. Researching location and price is important, but there are other things you should consider such as the cost of land rates in the area, any major scheduled works on infrastructure and local council plans for the area. How do you find and apply for a Home Loan? The home loan and lending market is highly competitive, with many features that make repaying and managing your loan easy. For an easy home buying process, you can apply for home loan pre-approval. Pre-approval gives you two months to go property hunting. It's important to find the right loan based on your needs. Again, answering the first question above will tell you whether you need a home loan or investment loan. From here, you can choose a fixed or variable rate loan with principle and interest or interest only repayments. (Interest only repayments can only be used for investment loans or for short-term bridging loans). Speaking to an experienced lender is the best way to find the right home loan for you. How do you manage a Home Loan once you buy your home? Managing your loan via Online Banking is an easy way to stay in control of your repayments. We can setup automatic loan repayments, so you'll avoid being in arrears.  Regular weekly or fortnightly repayments could give you extra savings in your home loan that you can redraw on later (if your home loan has a redraw facility) these savings will also minimise the interest you incur. View our range of home loans to get started. Alternatively, you may choose to have an Offset account. You can deposit your pay and savings into the account and the balance is then offset against the amount owing on your loan. For example if you have a property loan of $200,000 and $25,000 in your offset account; in this situation, you’ll only be charged interest on a loan balance of $175,000 ($200,000 - $25,000). No matter whether you're planning on buying your first home, new home or investment property, we're here to help. Get in touch with the friendly team at Horizon Bank today and let us assist you. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

With pre-planning and research, you can ensure you are on the right track to set yourself up for success when buying a home. Follow our easy home buying guide below to get an idea of how you can break into the property market. Determine How Much You Can Afford Using our home loan repayment calculator is the first step in understanding how loan repayments work and gives you an idea of how much you can afford to borrow. Determining affordability is about knowing your financial limits. Don’t over commit, and use foresight to think about possible future outcomes like a growing family, changes in employment and the cost of living. Save for a deposit Saving as much as you can for a house deposit before buying a home is ideal. The more you save, the less you have to borrow – therefore paying less in interest over time. Check out our blog article on saving for a house deposit. Understand your home loan options Home Loans come with many features so it is important to understand which mortgage will suit your needs. At a high level, there are fixed rate loans and variable rate loans, where you can pay off the principle and interest or interest only. Offset accounts and redraw facilities are great for saving on interest and helping you budget. Ask one of our lenders about which type of home loan would best suit your needs or you can check out our Home Loan Comparison table. Get Home Loan Pre-approval Getting pre-approved with Horizon is easy and worthwhile, as it lasts 3 months which gives you plenty of time to research the property market and make an offer on properties you know you can realistically afford. Consolidating or minimising debt will not only improve your overall financial wellbeing but also make you a strong candidate for pre-approval. To learn more about lending and home loan pre-approval with us, check out our page on the loan pre-approval process. Research suburb profiles The suburb you purchase in can affect things like ability to rent and resale value. Research suburb profiles online for the demographic of people living in that suburb, average incomes, house prices, rental yield and auction clearance rates. All of this information will help you determine the best area to buy in. You can always ask real estate agents for any available information at open houses. Find a Home in Your Price Range It’s important to buy something you can actually afford. This is why having home loan pre approval is an important first step before visiting open homes or display villages. You can then research house listings online or in the newspaper and make a note of open houses to visit. Take a trusted friend or relative as a second pair of eyes when inspecting properties so you don’t miss anything. Be sure to factor into your budget associated home buying costs such as stamp duty, solicitors fees, building and inspection reports and insurances. Let us get you on the path to home buying success. Get in touch with the friendly team at Horizon today and let us help you on your journey. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.   The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

The benefits of buying an investment property include:  Ownership of a secure asset  The future sale and benefiting from capital gains  Rental income to cover loan repayments and other associated expenses  Building equity  Taxation benefits Four main factors to consider when you decide to purchase an investment property is property type, location, growth and demand. Property type You should consider the type of property you would like to purchase and which will meet your budget and goals. The type of property that you decide on will determine the level of rental income you can receive and may change depending on the upfront and ongoing costs. Location When choosing an investment property it's location, location, location! Will the property value increase over time? Will it provide you with adequate income? Other factors to consider also include proximity to public transport, schools, childcare, shopping facilities and parking. These are important to attract tenants. Growth Consider how the potential investment property has performed over the previous decade and how it's likely to do in the future. Do some research of property prices in the suburb and surrounds. It would also be beneficial to consider the population growth, property prices and potential rental income of the area. Also consider new property and off-the-plan developments which may impact future rental income. Demand In relation to growth, demand is vital for investors. You don’t want to purchase an investment property in an unpopular area or without the features that tenants are looking for. Features high in demand are internal laundries, balconies, parking spots & lock-up garages, built-in cupboards and good storage space. Also consider any renovations that may be necessary and could potentially add value to the property. To see how much your repayments will be use our Loan Repayment Calculator, or use our Borrowing Power Calculator to see how much you could comfortably borrow. Better still, have a chat with one of our lending specialists. They'll be able to take you through options, help you calculate how much you can afford and help prepare you to take your next steps. Get in touch with Horizon Bank today about our investment loans. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.