When buying a property there is a lot to think about, so it’s important you take the right steps to get the best outcome. These tips can help you wherever you are on the property ladder.
6 tips to consider when buying a property
1. Do not trust public perception
Make sure you thoroughly research all types of properties and suburbs to ensure you can make right decision. Be mindful that when listening to friends and family, they tend to manipulate your opinion with there’s. Whilst they will no doubt have the best intentions, your own research may take you to a suburb that’s more up-and-coming opposed to established, which could result in a better investment (whether its Capital Growth or Rental Yield). You could be mistaken to think a particular suburb is a nicer area because you grew up close by or had some great experiences there. Check local crime reports to back up your opinion!
A great place to research suburbs is on the suburb profile pages on Realestate.com.au. It is here where you can find data on most suburbs in Australia, which is extremely useful to get an idea of how many people are looking for a property in your chosen suburb against the number of properties for sale in that suburb. A typical supply and demand indicator!
Other insightful pieces of information are the medium property prices, what sort of impact interest rates are having on the area, the supply & demand ratio and how the suburb’s property market has performed over time (when will it peak?). Whether you’re buying a home to live in or invest in a property to rent out it will always pay dividends to have the facts.
2. Location, location, location
Is it about being in the right place at the right time? Well, kind of….
Now you have your research on several suburbs, where do you start?! If you’re buying a home to live in then write a list of things that are important to you and where would suit your lifestyle. If you’re looking for an investment property, take yourself out of the equation completely. You need to consider transport links, whether that means public transport or major roads, a property with easy access tends to gather more interest from potential tenants. Other key aspects to consider are the cultural diversity of the area, shopping/entertainment centres and FUTURE DEVELOPMENT. That’s a biggy…. An area that is actively growing commercially tends to help house prices push local barriers.
If you shortlist a few suburbs then go for a drive around. Better yet, have a walk around! You’ll get a better feel for the area and experience firsthand what it would be like to live there.
3. Look on the brightside
Theoretically the property market works in percentages as it’s always relative to market conditions.
An example is in a declining market, because believe it or not, provided you’re in a position to buy, you can make money in the market (savvy investors do!). Let’s say that you own a home that you are selling for $300,000 and looking to buy something bigger due to an expanding family so potentially you’re looking at spending $500,000.
($200,000 difference between sale & purchase price). Now the property market takes a hit and you’re home is worth 10% less (extreme case in question). Fortunately the property market doesn’t have a thing for just your home; it will be the same for everyone else as well. So if you ended up selling for $270,000, you have accepted $30,000 less than what you were hoping for. However your next home that was for sale at $500,000 has been hit with a 10% decrease as well, so now you could own your next dream home for just $450,000 (that’s an $180,000difference between your sale and purchase price).
Congratulations you have made $20,000 out of poor market conditions. Unfortunately, the same rule may apply for people downsizing, which conversely wouldn’t be the best time to sell.
When the housing market is tough, it’s worthy to keep an eye on interest rates. A cut in rates could make a big impact on your investment opportunities.
Put some thought into when to sell or buy. If you’re selling, perhaps consider the traditional quiet periods for the property market. It will depend on the sale-ability of your home as to whether or not this will make a big impact. But when it’s quiet in the property market, much fewer homes come onto the market. If you are selling this could be a good thing as there is less competition in the market place. In the height of the market, lots of homes come on the market and in tough conditions fight for buyers. So it becomes who’s cheaper, what stands out, who’s really motivated?! This is great if you have a very unique home but for the most of us, can make it a stressful time.
4. Talk to us
Talk to Bridgebury Real Estate to find out what’s happening in the market. We will be able to offer comprehensive advice on the market and what may be best for your home/properties. We can assist you on your purchase and keep you ahead of the curve when it comes to new homes coming available. We can come up with the right strategy to achieve your goals!
5. It’s who you know and what you know
Register your information with Bridgebury Real Estate so we can tell you about those real estate bargains first. There are lots of homes each year that never reach the open market as there are buyers ready to go straight away that are willing to do what it takes to get the home off the market.
Don’t miss out!
6. Be smart, look closely
Staged homes are everywhere. It is the real estate agent’s job to make sure the home they are selling is being shown in its best possible light. The sellers may have painted the odd fence or wall to make their home as appealing as possible. This is a good thing as you can actively tell they are motivated. That being said, look closely. Beware of cracks, mould, potential pest hazards and pool fences.
Don’t be a wall-knocker! It’s like a tyre-kicker but for real estate. You will not demonstrate the home’s sound structure by knocking a wall. I am talking about the obvious cracks in brickwork, below or above windows etc. If you’re really interested in the home, make notes of all points and consult a surveyor, builder or pest expert (depending on the potential issue).