Five Tips for Buyers in 2016
Purchasing a property takes time, patience and persistence. There is a wealth of knowledge and resources available to ensure that you make the right decision for your future, however, it can be an overwhelming process. Whether you are considering purchasing your first property, or looking to expand your portfolio, here are some helpful tips to ensure you choose the best investment.
1) Purchase a property that has scope to grow in value
Location, facilities, schools, public transport, beaches, shopping malls, amenities (namely banks and supermarkets) are all physical factors outside the property itself which will contribute to the long-term attractiveness of your investment. It is important to note what infrastructure is in place at the time of purchase, as well as the potential for growth in the future.
In terms of the actual property, it is important to consider the scope for aesthetic upgrades which will ultimately increase the value of your investment. Concentrate on physical features which could be accentuated or reconfigured in an upgrade, for instance, the kitchen, bathrooms, or layout.
2) Seek out a relevant building reports
Seeking out specific reports prior to your property purchase will assist in predicting any ongoing costs which may occur over time. A building inspection will identify significant building defects such as movement in the walls, safety hazards or faulty roofs. Generally, the building inspection is carried out before the exchange of contracts. A pest reports should also be undertaken as they help determine the presence of termites, borers, chemical delignification and fungal decay.
If you’re purchasing an apartment, it’s important to ask for Strata costs upfront. These will include ongoing maintenance to the overall grounds or building and as a landlord you’re responsible for making these payments quarterly or annually.
3) Secure pre-approval for for finance
What would be worse than searching for a property, only to find the perfect one, and then being knocked back because your loan has not been approved? If you seek pre-approval at the right time, you will ensure you’re free to move on a property as soon as you make a decision. This will also give you more negotiating power with the seller – leveraging the fact that you can pay the deposit immediately. The longer the property processes take, the harder they become for most parties involved.
4) See past the present
It can be easy to see a property in its current state and become distracted by the colours, textures, smells and feel of a room or area. The best thing to do in a home that doesn’t suit your taste is to look past the ‘stuff’ – that includes the paint on the walls, the furniture in the room, the blinds on the windows, and the carpet on the floor. Look at the size of the room, the direction in which it faces, the amount of natural light and so on. Visualise the potential or creative solutions for spaces to unleash the real scope of the property.
5) Know what’s important to you
Prioritising what you need or want out of your property purchase is key to actually finding it. Making a list of transport, recreational and leisure preferences will help determine which suburbs fulfill these requests. Once you are clear on the location, you can narrow down your search to the structural preferences of the property, for example four bedrooms or three, garage or carport, pool or deck, and so on.
Be open, but know what you want. Look at what is in front of you, but also see past the present. Understand what is available to you now, but also what could come in the future. Being flexible and intuitive will ensure you make a smart investment decision.
Contact CPS Property to discuss investment advice today.
