It doesn’t matter if it’s your first house or your fifth investment property, buying a property can be a stressful experience. Whether you fall in love with the beautiful backyard or you see dollar signs popping up from the potential return on investment, there are so many things to consider when buying and it’s something that you certainly don’t want to get wrong.
Consider these important factors, so you’re in the very best position you can be:
Get good advice from a mortgage broker or financial planner. Be honest with them about your current situation and they can advise how best to go about getting a loan or streamlining your finances for this purchase.
If you’re getting a loan, having a decent deposit together can mean you don’t need to pay costly mortgage insurance, so consider setting your savings aside early. Having an accurate valuation of your current property is essential in figuring out if you can afford your next move.
Make the most out your property inspections. If you feel potential from the property, don’t just breeze through the rooms, look carefully at the layout to see if it would work for you, check the roof for any water damage, the walls for number of powerpoints, the kitchen for quality appliances, the amount of natural light coming in and the aspect of the backyard, just to name a few. Get all the reports you can get your hands on like building and pest reports.
Don’t be afraid to turn off the lights and open/close the doors to make sure you are satisfied with the natural lighting and surrounding noise from neighbouring properties and street traffic. Property inspections may seem like a formal affair, but it is your opportunity to make sure the place has everything you are looking for, so make yourself at home.
The real estate agent has spent more time in the property than you and has spoken at length with the current owners about the place, so ask them questions. Why are the current owners leaving, what is the strata committee like and where are the closest transport options?
Whilst we’d all like a five bedroom mansion with water views, a swimming pool and luxury cabana, sometimes we need to come back to reality and figure out just what we cannot live without.
You might decide that commuting to work is the largest concern, so location is your highest priority. In that case, a 2 bedroom apartment without parking close to the office may do. Or each child wants their own bedroom so a four bedroom house in a specific school zone is the non-negotiable but we could do with 2 bathrooms at a pinch. Create a list of non-negotiables and nice-to-haves.
Most people know what suburb they want to live in, however consider surrounding suburbs, growing suburbs and future infrastructure projects that may impact these suburbs. Check out the Transport for NSW website for current and future transport project. Check your relevant council website for planned changes to the area.
Transport and community infrastructure may have major impacts on the prices of properties you are looking at now or in the future.
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