Five things to consider before buying your next property.
When it comes to buying property, it’s fair to say it’s likely to be one of the most important financial decisions you ever have to make. As such, it makes sense to gain as much knowledge and insight on a property as you can in order to make smart, calculated decisions.
Yet, in today’s market, time is simply of the essence! If you don’t get in early on a new listing, you tend to miss out. With this in mind, it’s still important to make logical and considered choices, rather than those powered by emotion and urgency. So, before you even think about signing on the dotted line, here are five things you should ponder before buying your next property.
Refine your budget.
Before you begin the realestate.com.au search, be sure you are realistic around your budget and how much you can actually afford to pay for a new property. And, when we say afford, we mean the amount you can manage to part with each month, not necessarily the maximum the bank will lend you.
There’s no denying that home loan repayments – plus the associated costs of owning a property – can impact your monthly budget tremendously. Before you commit to a new home loan, we suggest planning your monthly budget with the repayments in mind. Can you comfortably live off your new budget for three months and maintain a lifestyle you’re happy with? If so, you know you’re off to a great start!
2. Research the local area.
Once you’ve decided on the suburbs that meet your budget, it’s time to do your research! After all, there’s no such thing as being too informed when it comes to buying property.
Start by analysing property prices and associated market trends in the local area. CoreLogic, realestate.com.au, and REIWA are all great resources at your disposal. Next, it’s a good ideal to talk to local real estate agents and your mortgage broker to get a sense of the property market as a whole and each suburb’s profile. These professionals have a wealth of knowledge and can give you a great “insider” view of the market.
3. Carefully consider the property.
Once you’ve found a property you’re interested in, it’s really important to consider it in its entirety. The last thing you want is to end up dealing with a bunch of nasty surprises!
Make sure everything is functioning like it should - the toilets flush, the air conditioning works and the kitchen appliances turn on. For any obvious extensions like a granny flat or studio, try and sight council approvals to cover yourself of any problems down the line. Finally, invest in a professional building inspector to give the property a thorough once over before the contract is finalised.
4. Think with your head, not your heart.
Buying property is a huge decision, and one of the few in life that shouldn’t be made with your heart! With this in mind, be sure to negotiate as hard as you can when it comes to crunch time.
Whilst it can be an emotional and exhausting process, negotiating an extra $10,000 may not seem much in the grand scheme of things, but when you’re dealing with a huge figure, every penny counts! If the negotiations aren’t working in your favour, don’t be too afraid to walk away. There will always be another property.
5. Prepare for the long haul.
Good things come to those who wait so don’t be disheartened if everything doesn’t come together like clockwork. Ultimately, the search for the perfect property may take longer than you think, so our advice is to keep vigilant and stay patient - the right property will come when you least expect it!