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Before You Buy Property - Top Tips

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By : Nick Viner    99 or more times read

  1. Never Forget Your Needs

    Ask yourself: ďWhy am I buying this property?Ē Your needs should govern the type of property you buy. Obviously, if you are looking for an investment property, you would have a very different set of criteria to those you would have when buying a place to live. What may appeal to you when looking for a home may not be appropriate for an investment property.

    If you are buying a home, donít just consider whether the property is right for you today. If you are planning a family for example, will the property be big enough down the track?

    Donít just buy a property because you or those around you think that itís a good idea. Buying a property is a very costly exercise. To avoid buying the wrong property, you should have a checklist of the things that you are looking for and make sure the property you buy ticks most of those boxes.
    Example: We were recently instructed by a retired couple looking to downsize. While they were fit and healthy, the property had to last them at least another 20 years. Therefore, they needed to consider whether buying a property with stairs was a good idea.

  2. Donít Buy Without Finance in Place

    Consider your budget. If you need to obtain a mortgage, find out from a mortgage broker or your bank how much you can borrow. Remember there may be a difference between the amount that you are able to borrow and the amount that you are prepared to afford. Do not borrow the maximum amount allowable if it means significantly changing your current lifestyle.

    If you need to take out a mortgage, obtain a Pre-Approval from your bank or mortgage broker before you start spending time looking at properties. Remember however, that a Pre Approval is merely a guide to the amount that you may be able to borrow based on your income. The Pre-Approval does not commit the bank or lending institution to lend you any money and in any event is only likely to be valid for up to 3 months.

  3. Donít Use Second Rate Service Providers

    When you buy a property, you are likely to rely upon a combination of the following service providers:

    • Solicitor or conveyancer to review the Contract and carry out the conveyancing. If you use a solicitor, make sure that they are a property solicitor

    • Mortgage broker or banker to help you obtain finance

    • Building and Pest Inspector to carry out a building and pest inspection report

    • Strata Records Inspector to carry out the Strata Inspection (if you are buying a strata property)

    • Financial planner and/or accountant in circumstances where financial planning or investment advice is needed

    Ideally, you should already have these contacts in place before you start looking for a property. If you find a property that you like before taking time to assemble your support team, you risk either losing the property to another buyer or having a second rate team who are likely to provide second rate advice.

  4. Always use service providers who have been recommended to you.

    Example: We were once instructed to purchase an investment property for a client who was keen to use his friend and family lawyer to do the conveyancing. It became clear that the solicitor in question had very limited property experience and provided such bad advice to his client that the client nearly missed out on buying a great investment property.
Nick Viner is the principal of Buyers Domain. Buyers Domain are experienced Sydney property buyers agents and specialise in the Inner West, Eastern Suburbs, North shore and Northern Beaches areas of Sydney.

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