Buying a property: tips and tricks for a successful purchase
For many first-time purchasers, the idea of purchasing a property can be daunting. In fact, property purchases can pose all kinds of challenges, even if it’s not your first time at market! With so many variables in the mix when it comes to a purchasing decision, it’s easy to get swept up in the hunt for a new home and overlook some simple steps that could make your journey towards settlement a stress-free experience for all involved.
Here are some easy ways to equip yourself for the road ahead and increase your chances of a successful sale…
- Secure Pre-approval
Working with a bank or home loan provider to secure pre-approval will give you a huge leg up when it comes to the search for your next purchase. Not only does pre-approval give you the clearest and most accurate idea of your borrowing capacity, but it also gives you a head start with your loan provider so you’re ready to move into action once you find the property you’d like to purchase. Too often, people set out and begin looking without a clear indication of their buying capacity. This can lead to heartbreak, as it may turn out that that dream home is actually outside of your price range. Heading into market without pre-approval can be limiting and disappointing – it’s never too early to know what you have to work with and set your expectations clearly.
- Do your research
A property purchase is a major life decision, and there are many factors that add up to a wise investment. It’s important to ensure that you’re purchasing in an area that will yield an ongoing high demand, leaving you positioned for potential long term profitable gains. Although it may be love at first sight, make sure you have an in-depth understanding of the strengths and weaknesses of the suburb profile of the area you’re looking at, as well as an understanding of the property’s strengths and weaknesses itself. By digging deep in your research phase, you’ll be able to discover any plans for future work (such as infrastructure upgrades, new shopping facilities, or improvements to public transport) that may lead to an increase in your property’s future value, therefore increasing the attractiveness of your purchase.
- Location, location, location
As well as examining any proposed future changes to the suburb you’re considering, you can quickly build a familiarity with your property’s short-term value propositions through looking at its access to facilities such as schools, public transport, shopping centres, and access to major roads. Not every suburb will tick all of these boxes, but the more ‘livable’ the area you’re looking to invest in, the higher the potential ROI you stand to gain.
- Underestimating costs
So, you’ve secured pre-approval, finished your research, found your dream property, and had an offer accepted? Congratulations! Time to pop open the champagne… and hopefully, not fall off your chair with some surprise costs you didn’t know to expect.
There are many additional costs that come along with purchasing property, including items such as…
- Strata reports
- Building inspections
- Pest inspections
- Solicitor fees
- Stamp duty
- Council & water rates
- Unforeseen moving costs
Before you make a commitment, it’s integral to understand the overall costs associated with the purchase price and compare this to your financial position. Can you truly afford to complete this purchase? If you’ve done your legwork and prepared yourself, your first night in your new home will be restful, not stressful.