With the RBA’s interest rates at an all-time low, there’s no better time to buy a property! For the first time in decades, Australia’s reduced interest rates mean that buying a home is now possible for many people who previously couldn’t get loans. These favourable credit conditions, combined with the many Australians now working from home, means that many buyers are now taking the opportunity to enter the property market.
However, even with incredibly lower interest rates and various government grants for first home buyers, purchasing a property is one of the most important and expensive investments you’ll ever make. Because of this, it’s crucial that you do your research to make the most of your investment. Whether it’s your first home or your fifth investment, here are the three most important things you should consider when buying a property.
1. What can you realistically afford?
Before you even start looking for a home, you should calculate how much you can borrow. Ideally, you will want to have at least 10% of the value of the property saved, but 20% is preferable. Furthermore, don’t forget to account for additional costs such as stamp duty, Lenders Mortgage Insurance, loan fees, conveyancing fees, building and pest inspections, and any other insurance you may require.
With all of these things to consider, the best way to figure out how much you can borrow is to speak with a mortgage broker or lending specialist as they can provide the most accurate and up-to-date requirements and information.
2. Do your research
Buying a property is all about research. In the beginning, you research the areas you’d like to live in, recent sale prices, suburb profiles and chat with local real estate agents to see how the market is trending. Once you’ve found a house you’re interested in, you can use property profile reports to see what similar homes have sold for, the rental history of the property, and an estimate of how much it is worth.
Once you visit the property, check every detail. For example, does the heating/air-conditioning work? Is the water pressure strong? Does the property have Council approval for renovations?Not only should you make sure to hire a professional building and pest inspector to scope out the property, but we also recommend doing a title and statutory authority search.
Preparing the groundwork and doing this research beforehand means that you are more likely to identify any issues, and can make intelligent choices when negotiating.
3. Location, location, location
Location is perhaps the most important thing to consider when buying a property. As the old saying goes, “buy the worst house on the best street”. A house in a good location (close to amenities like public transport, parks, schools, shops) will always remain an asset and weather any fluctuations in the market.
So, when looking at a new house, make sure to consider its overall location too. For example, you should:
- Visit the neighbourhood at different times of the day to get a feel for any noise, disturbance or crime issues.
- Take note of any good schools in the area. Even if you don’t have kids, it increases the value of the property.
- Check if basic amenities such as street lighting, internet connectivity and lighting are reliable.
- Find out if Council plans any developments or changes to the area.
Here at Wills Property, we boast a range of property management services dedicated to helping you achieve the result you want. Call us today or browse our range of properties available for inspection.