At the beginning of 2012, predictions were made that 2012 will be a boom for real estate. Properties were bought and sold, but a boom never really occurred. Predictions were cast for 2013. The year is still young and anything can happen. But will it? What makes properties sell at a high price? It comes down to security, affordability, right location and facilities.


Let’s break it down further. Security is having the confidence in a stable job that you hope will continue. If you are concerned about the security of your job but want to buy a home anyway, then taking out the necessary insurance can help if an emergency situation leaves you stranded for an income.

Security also comes from the economy and housing market. Do you want to buy a property when the house value is lower after you buy it? Absolutely not. Although there is always a chance and time when this can occur, it won’t be an issue unless you are looking to sell and if you have to sell it quickly, you could end up losing on your mortgage. Obviously, having a plan, let’s call it a housing plan, where you estimate how long you would like to live in your home, will help determine possible equity that may build over a longer period of time.


Being able to afford the mortgage is paramount to paying it off. A lender may say you can borrow up to a certain amount. However you need to ensure your budget can comfortably make these payments. Try and borrow 10% less than what is given to you. Then add the 10% extra repayment to lower the loan term overtime. This can also help if in the future you may need to miss a few months’ mortgage repayments, due to unforeseen circumstances. Chances are the loan term is 25-30 years, and with all your best intentions of meeting those regular repayments, there may come a time when you just can’t. At least you have something to give if that happens. It will also help pay out the loan even quicker.

Right location and facilities

Buying in the right location is not just important for what the suburb hosts but also how much it will provide you over the coming years. Do you want to start a family in the future? If so, is it close to schools and playgrounds? Are you looking to create a business close to home or work closer to home? Then you will need to find if the relevant industry you want to work for is set up in that area or has plans to be there in the future.

Can you easily get to places with minimal public transport times? If you want to get somewhere quickly, is catching a bus to then ride a train going to work for you or would you prefer to be closer to your destination and just catch a train? There are lots of points to consider. The main points are, how does the area make you feel? In five years time, will you be tired of it or is there so much in the surrounding suburbs that you will have much to explore?

With any big investment, it is good to ask the above questions and to discuss it with someone who has experience and knowledge in the ever-changing mortgage world. Contact Australian Mortgage Managers on 1300 799 266 or email This email address is being protected from spambots. You need JavaScript enabled to view it.