In this robust and fast-paced market, it can be a stressful exercise when looking for a property to buy. However you can minimise that stress by firstly taking the time to compile a list of exactly what you are looking for in a property before your search starts. This will speed up your search by keeping you focussed and ensure properties you end up visiting meet your needs.
As well as the usual number of bedrooms, general location and price range, also consider the following:
- How long do you intend to have this next property for, and how will your needs change over that time?
- If your lifestyle is changing, look at the space requirements for new hobbies which can require either separate indoor or outdoor areas.
- Be realistic about how much time you have for maintaining various areas of a new property. A large immaculate garden takes a lot of work, but is great if gardening is a favourite or developing hobby.
- Where do you need to be? Do you need to be close to schools, medical care, vets, recreation facilities, shopping, or even other family members?
Having developed this list to clarify your real property needs, use it as the basis of a discussion with your local Harcourts property professional. The better they understand your needs, the more options they will be able to provide you with to help achieve your property buying goal.
Be prepared to think a little creatively about your property needs. For example if you won’t need that extra bedroom for a couple of years yet, consider a property where you will have the space and finances to add that room later.
When deciding whether to enter the investment arena, you first must decide upon your goals: do you want to maximise your capital gain, your rental income or both? What is your budget? This last point is perhaps the most important. While capital growth and rental yields will significantly influence your decision, making sure you can afford your investment is paramount.
There are five top tips for finding the perfect investment property that everyone should take under consideration.
1) When purchasing an investment property, the decision should be emotionless, focusing only on the return and growth potential.
2) Never buy above the average price in the selected suburb. There is guaranteed to be more scope for capital growth when you buy below the average price.
3) Always buy properties in top condition. Unless you are skilled with a hammer and have plenty of spare time, this will maximise your investment.
4) If possible, buy new or near new to ensure maximum depreciation claims and to avoid maintenance issues in the first few years.
5) Find a good real estate agent and maintain regular contact with them – use their significant experience in the industry to your advantage, rather than blindly conducting internet searches and attending copious open homes.
These five tips give you an idea as to the mindset you should be in, and first actions you should take when beginning your search. Now combine this mentality with looking at eager vendor situations (e.g. divorce settlement, buyer has bought elsewhere, deceased estate), growth fundamentals and long listings and you will ‘strike gold’ with a bargain. There are of course no guarantees with property, but you make your own luck. Happy hunting!
Purchasing a property at auction can be an incredibly stressful process for many. With all of the action and excitement on auction day, many bidders end up exceeding their budget and can often end up paying too much for a property.
In order to avoid common pitfalls, consider these simple tips.
• Work out what the property is worth and what you’re prepared to pay for it.
• Once you have determined what the property is worth and what your budget is, select a maximum bid amount and stick to it at all costs.
• Before you buy at auction, learn the auction process - go to several auctions as an observer, watch the auctioneer, watch the bidders and understand how the process works.
• Prior to auction day, inspect the property - complete building and pest inspections, title searches, property valuations and conduct your own research on the property and the suburb.
• Before the auction, ensure that your finances are arranged and that you have the deposit funds available if your bid is accepted.
• When bidding, keep upping your current bid by the smallest increment allowed until either the competition drops out or until you reach your limit. If the auction finishes before you reach your limit, you secure the property at the lowest possible price for you.
• If you are overly nervous or not confident, consider asking a friend or family member to do the bidding for you. Alternatively, consider hiring a buyer’s agent to handle the bidding on your behalf.