Making a good property purchase isn’t a matter of luck. It comes down to some solid research and a clear vision of what you hope to achieve. So when it comes to buying bricks and mortar, here are some top tips on how to be smart when entering the property market.
Dream Home
It’s very important to first know why you are buying a property. Is it for investment or your dream home? If it’s your dream home then you need to quickly establish what you are after. Do you want to build or buy an established home? If it’s new, spend time at display homes. Many construction companies and builders in Sydney and elsewhere such as Coral Homes have display homes that you can investigate for options. If you have your own plans, interview a series of builders. And don’t forget to research your prospective builder to ascertain customer satisfaction.
If your dream home is an established house, get your inspections done. Pest and building inspections will alert you to any problems below the surface or expenses you might be likely to face in the future.
Investment Properties
Investment is about picking the right suburb, a house at the right price and looking at items like rental return and capital growth.
Stepping Stone
You may be hoping to purchase your dream home soon, but need to go for a smaller stepping stone first. Again you’re hoping for good capital return on your investment and to pay the mortgage off quickly. You’re looking for a boom area where prices are likely to go up so you can jump to that next level and the house of your dreams.
Know Your Suburb
Get to know your prospective suburbs and what they may be likely to do. That means researching what plans other people have for that suburb. Is it earmarked for upgraded transit routes and major retail developments? These may be signs property is likely to go up.
Talk to people who are involved in property. For example, Sydney builders and real estate agents will have a good idea about what’s planned for Sydney suburbs. Also check items like census data, and ascertain what the employment level is like in the area. Is this a small town where there is an artificial boom due to mining? What happens to property if that mine should close? Spend time in the suburb getting a feel for what it’s like to live in.
Know Your Finance
Before you even think about buying you should know what your budget will be. With interest rates at record lows, the biggest tip is not to overextend. You need to consider some worst case scenarios. This mortgage may be feasible at 5% but what if rates go up. How would you fare at 10% or even 17% where the interest rate topped out in the 1980s? What happens if you change jobs or receive fewer hours?
Finally, buying a property is a juggle between heart and mind. It’s one of the biggest commitments you are likely to make in life so know your strategy, do your research and minimise risk.
Recent comments