With auction clearance rates now hovering just over 40%, the market has turned in favour of buyers and there are some seriously good bargains to be found.
When it comes to buying property, it always pays to do your homework well in advance. The hard work kicks in far before you are trekking around open homes in every spare minute of your weekend. Here are 7 Golden Rules to tick off well before you think about buying a property.
Establish Your Motivation
This is a very important first step when purchasing property. What is your motivation for buying a new property and what do you want from this property? Is it to be your forever home? Is it an investment you are looking to flick in under 5 years? Is it a long-term retirement investment plan? Answering these questions will help to structure your finance and loans accordingly. It will also help to keep emotions at bay in the purchase process by ensuring you do not overpay for the wrong property.
Check Your Finance
Check you can afford to purchase a property with your existing finances. Banks have tightened their lending criteria significantly over the past 24 months, so you will need to ensure your borrowing capacity is where it needs to be. Speak to a mortgage broker or directly to your bank to gain a preapproval amount so you can confidently look for properties within your price range. In our experience, it is taking the banks longer and longer to pre-approve loans so plan accordingly.
Do Your Research
Begin by looking at the demographic makeup of the suburb you’re buying in. Where are the schools, shops, and transport links – and how good are they? See if there are any upcoming infrastructure changes or major developments that will impact the suburb. You should also check out the crime rates for the area – especially if you have children. There are plenty of helpful government websites that can help with this, including the NSW Bureau of Crime Statistics and Research (BOCSAR) website.
If you’re happy with the suburb, the next step is to drill down to street level. Find out how well the street rates in the area. What are the neighbouring properties like – and are any of them tenanted? Check the sales history of the property you are interested in as well as recent comparable sales to give you a better indication how much you should be paying. Finally, be sure to visit the property at different time of the day or night, to make sure you’re comfortable with the area. By following all these steps, you have a better chance of finding the right property at the right price.
Build Your Team
It is important to have a good team around you to assist with the buying process. Namely a good banker or mortgage broker, conveyancer, building and pest inspector and a strata records inspector (for strata titled properties). Ensure they have a good, local reputation and make contact with them prior to looking for properties.
Build Relationships With Agents
Get to know each and every one of your local estate agents. Advise them on what you are looking for and give them your best contact details to advise when an appropriate property comes on the market.
Bid And Offer Appropriately
When it comes to the crunch and you have found a suitable property, be sure to bid or offer accordingly and within your means. This means leaving emotion at the door and bidding with your head, not your heart. If you miss out on a property, there will no doubt be another around the next corner. Be patient.
Consider Using A Buyer’s Agent
Buyers’ agents are real estate professionals searching and buying properties for their clients every single day. Their job is to hunt down the best properties for you. They will save you not only money, but valuable time as well. They take the stress and emotion out of the purchase and will find the most suitable property for your needs.
If you’d like to discuss the value that a Buyer’s Agent can bring to your next property purchase, contact Nick now on 0405 134 645.