Things You Should Know When Researching to Buy A Property
/Buying a property is a significant financial commitment that can have a lasting impact on your life.
Buying a property can be dauting and a big step in anyone's life, it's essential to approach the process with a level head. Here are some tips to help you make informed decisions when researching to buy a property:
Determine Your Budget: To avoid disappointment before you start dreaming of that prefect home or investment, you need to know how much you can afford to spend. This means taking an honest look at your finances and working out your budget. Consider factors such as your earnings, savings, debts. You can use online calculators to get an estimate of what you can afford, but it’s always best to talk to a professional mortgage advisor.
Consider Additional Costs: Buying a property involves more than just the purchase price. You should also consider additional costs such as stamp duty, property rates, body corporate/strata fees, maintenance costs, and insurance premiums. These costs can have a significant impact on your budget, so make sure to include them in your calculations.
Your team of professionals: Seek advice from professionals like an Accountant, Financial planner, Solicitor/Conveyancer, Finance broker/Banker, and Independent licensed buyer's agent to ensure you're well-informed throughout the process.
Decide what type of property: Consider your plans and goals for the property and the type of property that will best suit your needs. Will it be low maintenance? Will there be extra outgoings? Will it offer you organic capital growth or can you manufacture capital growth? If it is an investment what type of yield?
Research the Location: When buying a property, it’s important to research the location thoroughly. Whether you’re buying a home for yourself or as an investment, you need to consider factors such as proximity to amenities, crime rates, schools, transportation, and the job market. Researching the location can give you a better idea of what to expect in terms of property value and quality of life.
Prepare for property viewings: It is important to view as many properties as you can, do not limit this to open homes, choose different times of the day, different days of the week. Do your research on what has sold, (to do this well, you need to have viewed them prior to them selling). Check the history of the property you are interested in.
Building and Pest Inspections: Before you commit to an offer, make sure to get the relevant property inspections carried out. This can help you uncover any issues with the property that could impact its value or safety. A home inspection can also give you information on maintenance and repair costs, which can help you make an informed decision.
If it is an investment property: Consider any depreciation you may be entitled to; this is not restricted to new builds.
Pre settlement inspections: Always, carry out a pre settlement inspection because once the settlement has occurred it can be too late to rectify any issues, regardless of the extent of them.
Buying a property is a significant investment, so it’s important to do your due diligence and make informed decisions. By following the tips above, you can ensure that you’re on the right track to buying the right property.
