What you need to know before buying a residential property
When it comes to buying property, we're all familiar with the adage “location, location, location” but what are the other important factors?
When it comes to buying property, we are all familiar with the adage “location, location, location” but what are the other important factors to consider before you buy?
What’s your budget?
First and foremost, you need to consider your total budget available for the purchase. Remember to factor in all the hidden costs associated with transaction, these include transfer costs, transfer duties, bond costs, cost of movers and any additional work that needs to be done on the property itself. Once you have a firm number in mind the hunt for your perfect property can begin.
Where to find the best value?
There are a myriad of property sales platforms available to help you find your property including online sales platforms, local estate agents and auction - a platform that is rapidly gaining in popularity. More and more buyers are attending auctions because they know they can acquire properties at fair value and that they are dealing with committed sellers (not people just testing the market).
Does it serve your current and future needs?
Before committing to any specific property, look at it from both a functional and an investment point of view. From a functional point of view, it’s important to consider whether the property serves both your current and future needs. From an investment point of view, you need to consider how the property stands to perform as an investment over time. Generally speaking, property prices at a suburb level are either on the rise or the decline. Make sure that you only buy a property in an area that’s on the rise to achieve capital appreciation over time.
Inspect it thoroughly
When you have found your ideal property in the right area, make sure to inspect it thoroughly! Walk through the property with an independent contractor who can point out things that may have gone unnoticed to you.
Finally, ask yourself does this property make you feel at home?