The Allure and the Risk

Property auctions offer an exhilarating experience with fast-paced bidding, a competitive atmosphere, and the dream of finding your perfect home. However, diving into an auction without proper preparation can lead to disastrous consequences, including the loss of your home deposit.

The Importance of Pre-Approval

For First-Time Buyers
While you may have done your research online, our team can help you navigate the nuances of our loan products and align them with your financial goals. Pre-approval can also alleviate anxiety about the long-term commitment of a mortgage.

First Steps for Pre-Approval:
• Check your credit score.
• Gather necessary financial documents.
• Consult with one of Well Money’s home loan consultants for a tailored mortgage plan.

For Those Considering Refinancing

If you’ve been through the home-buying process before, our experienced home loan experts can provide updated, personalised advice to ensure that you don’t overextend yourself financially in the heat of the moment.

Leveraging Existing Property:
• Assess the equity in your current property.
• Consult us to understand how this can be leveraged in an auction setting.

For Investment-Minded Individuals
As you seek to expand your portfolio, auctions can offer a quick way to do so. However, each property represents an investment that must align with your broader financial strategy. Pre-approval ensures that you make a calculated decision rather than an emotional one.

Investment Tips:
• Look for properties in up-and-coming areas.
• Consider the rental yield and capital growth potential.

For Those Looking to Downsize:
• Get a property valuation for your current home.
• Plan your budget, factoring in the sale of your existing property.

The Perils of Emotional Bidding

Auctions are designed to evoke emotions, and the excitement and competition can easily lead to impulsive decisions, such as bidding beyond your means. Pre-approval acts as a safety net, preventing you from making bids that could result in financial strain or the loss of your deposit.

Additional Costs to Consider: Beyond the Winning Bid

When caught up in the excitement of an auction, it’s easy to overlook the fact that the winning bid isn’t the only cost you’ll incur. In Australia, there are several additional fees and charges that can significantly impact your overall budget. Here’s a breakdown:
• Stamp Duty: 1.25% to 7% of the property’s value (varies by state)
• Inspection Fees: $300 to $700
• Legal Fees: $1,000 to $3,000
Note: These fees are estimates and may change under varying situations.

Expert Guidance with Well Money 

If you are an older individual looking to downsize or refinance, your long credit history can be an asset. Lenders may consider a lengthy and positive repayment history as a sign of low risk, even if you are nearing retirement. However, it is essential to understand how your age and potential retirement could affect your mortgage terms.

Tips for Maintaining a Strong Repayment History

Navigating the complexities of property auctions can be overwhelming. That’s where expert guidance from the team at Well Money, proves invaluable. We can assist you in preparing for your next auction by reviewing your financial situation and providing advice on our loan products that suit your needs – let us do the legwork for you.  

Secure Your Financial Future Today

Don’t let the allure of an auction jeopardise your home deposit. Secure a pre-approved loan with Well Money and bid with confidence, knowing that you’re making a financially sound decision. 

Click here to schedule your free consultation today.