It is a good idea to find out how much you can borrow before starting to look at properties. It could save you disappointment later.
As financial institutions all have different requirements, it is best to talk to either a few banks or a broker who often handles in excess of 20 banks and building societies. When you are buying furniture or want work done on your home, you don’t get just one quote, do you?
This particularly applies when buying investment property. Look in the papers and property guides and definitely go onto the Internet to get a feel for prices in different suburbs. The Internet provides a wide scope of photos and other information often not possible with print media.
Once you establish where you want to buy, then go to as many ‘open homes’ as possible. This is a great way of getting a better feel for what you can buy for your dollars.
There are a few key factors to consider:
- Suburb location?
- Is it close to transport?
- Is it close to shops, cafes, etc?
- Is it close to schools or other educational institutions?
- Is it functional?
- Does it need any repairs or renovation?
When purchasing an investment property, also consider aspects such as:
- Does the area have good capital growth potential?
- Is the demand for rental properties strong in the area?
- Will the property need a lot of maintenance?
Building & Pest Inspections
So now you’ve bought your dream property and have arranged for building and pest inspections to be done. It is a great idea for you to attend both of these, which are usually done at the same time.
The inspectors are happy for you to be there as they can explain everything they see. You still receive the detailed report, however it is much easier for them to explain details to you and answer any questions you may have when you are there in person.
Sometimes a report may have lots of extremely minor faults listed; after all, it is not a brand new property. So that you are not left wondering how the building still manages to be standing, it is always best to go along to inspections if possible.
Always overestimate the costs involved when buying a property. You will feel much better when there is money left over, than if you underestimate and run short.
There is always something you want or need in your new home to make it your own. Imagine if there is money to spare to allow you to buy those little extras. You’ll feel like you’ve had a great win!
If this is the first time you’ve bought a property or it’s been a long time since your last purchase, feel confident that at Position One, we will explain each procedure and guide you through the whole process. Please don’t hesitate to ask any questions, as we’re always more than happy to answer anything you want to know. After all, we work with property every day!