BUYING A HOUSE OR UNIT?

Whether you are buying your first home or unit, your first investment property, building your portfolio or upsizing/downsizing the family home, it is important to do your due diligence.

Buying a property is an exciting time and sometimes it is difficult to keep the emotion out of it.  But, taking a more business-like approach and removing the emotion, will ensure you understand the advantages and risks involved.

Here are our Top 4 tips to consider before buying a property.

Research the Market

It is important to know what the property is worth and how much to offer.

Sometimes market trends can change quickly, so keeping up to date with price changes and demand in the area are very important.  Covid-19 is a good example, with many people relocating, both intrastate and interstate.  This means a high demand for property and when there is a high demand, people are willing to pay more than historical market trends suggest.

Real Estate portals, such as domain.com.au and realestate.com.au, provide up to date information about properties for sale and historical sales data.  Websites such as CoreLogic and Australian Property Monitors provide comprehensive information about property market facts and figures.

BEST TIP!! Your local Homes4U Sales Agent will have the most up to date information, as they are in the thick of it every day.  They will give you an invaluable insight into the market today and in a fast-moving market, you can be the first to know when a new property is being listed.

Obtain Finance Pre-Approval

Purchasing a property is probably the biggest financial investment you will ever make.  Knowing what you can afford, allows you to focus on a market within your price range.

How much can I afford?  Best way to find out is to obtain finance pre-approval.

However, with so many lenders in the market, this can be a very time consuming and daunting process.  Finance brokers are like real estate agents of the finance world.  They deal with clients and lenders every day and it is their job to know the best products out there.  A good finance broker will listen closely to your needs and match you with a lender or range of lenders who meet your requirements.

Engage a Property Conveyancer/Lawyer

As specialists in property sales contracts, Conveyancers and Property Lawyers will ensure all searches and investigations are done prior to the contract going unconditional.  They also attend to transfer documentation and the settlement process.

Examples of searches are as follows (this is not exhaustive) – Title Search, Registered Plan, Easements and Encumbrances, Sewerage, Council searches for rates, flood zones, approvals for property improvements, Transport and Main Roads, Energex, Survey Reports, Contaminated Land Register, QCAT Tree Register and Minor Civil Dispute (fences) search.

Each Conveyancer/Lawyer may have a different idea of which searches are “essential” and which are not.  Make sure you choose someone who you are confident will meet your specific needs and requirements.

Building and Pest Inspections

The choice is yours, but we will always encourage you to obtain a Building & Pest Inspection.  Although you can take a thorough look at the prospective house or unit yourself, some issues can only be identified by trained professionals.

It is important to determine whether a property has any major issues, such as structural or foundation or pest infestations.  The reports provided are comprehensive and can assist with your price point and provide comfort you will not be hit with any nasty surprises down the track.

Engage a Licenced Inspector, who knows the properties in your area and is experienced in your type of property.