A Few Ideas To Help Property Buyers Make Better Decisions

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Buying property is always exciting, whether you are an experienced investor with multiple properties in your portfolio, or a first home buyer turning the keys in the front door of your new home. Getting the best return for your valuable dollars, however, is a different matter. Even though property is seen as a secure investment, it is still possible to lose money if the purchase is not made for the right reasons.

First Things First – A Clear Intention

So what should a buyer be considering before signing a contract to buy property? From our perspective, the first step should be having a clear intention. It’s the place our people start when Position One Property is first approached by clients looking for property. The answers will be different for a first home buyer, a family upsizing to a larger home, a sole occupant with a busy work and social life, and an investor.

Check Your Financial Position

With a picture of the type of dwelling they want clear in their minds, buyers should next consider their financial situation. Do they have a sufficient deposit to avoid paying for mortgage insurance? Have they approached a lender to find out how much they can borrow? Do they have extra funds on hand for legal fees and any other contingencies?

With their finances in order, we recommend that buyers turn their attention to the three most important words in real estate – location, location, location. Realistic buyers who know what they want and how much they can spend narrow their search area and intensify their focus. They avoid the common scenario that other buyers sometimes fall into, jumping from one suburb and property to another, trying to meet all their wants but ending up completely confused.

Choose a Desirable Location Within Your Budget

A location close to work opportunities and amenities such as shopping centres, medical facilities, schools, recreational and entertainment pursuits is a wise choice. This is just as important for an investor as it is for owner-occupiers. Rental properties in rundown areas will be cheaper to buy, but harder to keep rented, as good tenants need these same facilities.

Owner-occupiers looking for future capital gain should consider the general appearance of the whole suburb and not just the street where the property is located. An area with street after street of well-maintained properties with plenty of green space will hold its value much better than a suburb that looks untidy and neglected.

Set Emotion Aside for Better Choices

Choosing a suitable property is often an emotional decision, especially for owner-occupiers who promise they will be rational then fall in love with something completely unsuitable for their needs. Hopefully, these few suggestions will help them make better choices.