If you’re on a budget, it can be difficult to find cheap houses for sale, especially in your desired area. McElwaine Estate Agents sell homes within the East Maitland area in New South Wales, located just 40 minutes from Newcastle. We pride ourselves on helping you find your perfect home for the right price; finding the most affordable houses for the most value. Therefore, we’ve provided you with a buying guide below covering everything you need to know to find a bargain.
Most affordable houses near you
Below are some frequently asked questions in regard to buying a home.
How much should you have saved before you buy a home?
Before buying a home, you should aim to have 20% of your income saved if you wish to purchase a home within the next one to three years. For example, if you earn $80,000 per year, you should aim to save $16,000.
Is it better to buy a cheap house first?
Choosing to make your first home purchase inexpensive is a good idea so that you can build up equity to cash in and eventually buy your dream forever home later down the track. However, depending on your situation, it may be a better idea to continue to rent while you save.
What type of house can I afford?
To calculate what type of house you can afford, a great way to calculate can be to use the 28% / 36% rule. This means that you shouldn’t spend more than 28% of your gross monthly income on house costs and 36% on total debts.
How to find the best value houses
A home with great value will mean something different to everyone, with people seeing value in a variety of things including land size, amenities, fixtures and fittings, interior design and street appeal. While good value homes can be few and far between, some tips for finding value filled homes include:
- When you see a good deal, don’t sit on it
- Seek out bank-foreclosed properties (these sellers want a quick sale)
- Approach current owners
- Look in the cheapest suburbs
- View properties you wouldn’t normally consider
Where to buy cheap houses
Finding a cheap house in the suburb of your choice can be difficult depending on where you choose to live. At McElwaine Estate Agents, we are based in East Maitland, and sell properties within this suburb and surrounding areas. The median house price in East Maitland is $505,000 with surrounding suburbs such as Metford averaging $450,000 and Morpeth averaging $590,000. This is comparatively cheaper to suburbs in Newcastle; for example, North Hamilton whose average house price is $1.22 million.
A “bargain” house is what many would consider a property deal that is almost “too good to be true.” While finding a bargain can be rare, if you’re set on saving some money, it can be helpful to know how to give yourself the best chance of doing so. With many bargain homes, you often have to look beyond the cosmetic features and instead focus on the land size, location and most of all, find a motivated seller who is willing to negotiate.