This is a common question I get asked about by people that want to enter the property market. Not only first time buyers, but also people that might not have bought a house in a while. In this article I’ll share 5 things you want to check before you buy your next property!
The first thing to figure out before you go and look for a home, is your budget. Know it, and stick to it. I would talk to a mortgage broker, banks and any lending institution. Whoever you choose, make sure you trust that person and listen to their advice. Be honest with them with regards to what you need, and be honest about your monthly cost, so they know exactly if you’re financially viable to purchase that house for $700,000 or $800,000. You need to know this so you can service that loan.
So – know your budget. Make sure you get that in place. Get the right people and the right advice around your finance to be able to complete the deal.
2. Educate yourself on the market.
Before you go jumping in, educate yourself on the market. Study the market and the suburbs that you want to buy in by attending open houses and auctions. It’s the best way to educate yourself before jumping in, to know that you’re paying the right price for the property. Tying into that – don’t rely on the media. Don’t just rely on what you read. Do your own homework, and make sure you get in there and get out in the field. Go to open homes, auctions, track properties, go look and see what they’re like and see what they sell for.
Just because an owner is asking for a certain amount for property, doesn’t mean it’s the right price. Just educate yourself with what else has been sold, so when you do take the plunge, you can take it with confidence. Education is the key and I dare say if you do that, you will probably have more knowledge than probably 90% of the agents in the marketplace, because most of them don’t even do this. You will be very highly educated in making the right decision and moving forward to the purchase of your property.
3. Set property goals.
The third one would be set out your property goal. Why are you buying this property? Is it long-term, or is it for a short-term renovation to sell it within 12 months? Graya Construction does this. They’ve got a plan in place for their houses, and we know exactly when all the ideal houses are coming on the market. But what are your property goals? Is it to buy for a short period of time or is it to buy over a long period of time and build a portfolio up with smaller properties you can add value? Or even to live in it? You can use the equity to build your property portfolio. There’s all sorts of different strategies, so work out what your property goal will be. T
4. Work out all the associated costs.
Fourth thing is to work out all the associated cost with buying the property. Some properties need some love, so figure out how much it will cost to do some light renovations in order to make it rentable or liveable. You also need to take into account any other associated costs in moving, conveyance, etc. They are not high ticket items but they can add up, and you need to know all of your expenses so you can plan ahead.
PS – if you want a free step-by-step renovation guide to get a 300% return on investment, click here.
5. Study the property.
Fifth and final thing would be once you’ve found that home, research the house to make sure you know exactly what you’re buying. So you’ve done all the research, you’ve looked around, you’ve looked all the properties in the area, and you found the one for you. Make sure you spend time looking at that property in particular. Study it up and down. You might have grand plans to put a pool on the corner and then all of a sudden you found out there’s a massive big line of pipe in the corner so you can’t do that in the end.
It would be mainly to make sure that you know what you’re getting into, you know what you’re buying, you’ve done your building inspections etc.. There are various things that can pop up and you need to be aware of them! Sometimes there’s even neighbourhood disputes as far as the trees go. So make sure that you’re not getting yourself into legal battle as well.
If you do these five things, you’ll be setting yourself up for success and will be able to buy the right property. If you’d like a hand implementing all of the above and creating a bulletproof strategy, give me a call on 0405 000 219 any time and I’d be happy to help. Chat soon!