Finding a property is not an easy task. Buying a house is a huge investment and if it doesn’t go right, it can cost you a lot of money. This is why it is so important to understand all the do’s and don’ts when finding a property that is suitable for you.
Remember, it’s about it’s going to a be a long-term game, so give yourself time. It can be quite a stressful task as you might have to visit a number of houses every day. Before you begin your search for the desired property, ask yourself the following questions:
- Should you buy a property or is it better to live in a rental apartment?
- Which area is affordable and suitable for you?
- How many rooms do you need or want?
- Do you want to buy a house for investment or residential purpose?
- Which type of house are you looking for?
The list of questions is never-ending, especially when it comes to spending a lot of money in real estate, but these are some of the basic questions you can ask yourself before finding a property. These will give you proper direction and help you create a mind map when hunting for a house.
Purpose of Buying a Property?
As discussed, figure out the reason why you wish to buy a house in the first place. Is it for investment reasons or do you want to buy a house for residential purpose? It is very important to first answer this question, because there are so many differences between buying a property for residential vs investment reasons. For an investment property, you are required to have a relatively higher initial deposit; if you need a 5 percent deposit for a residential home, a 10 percent deposit would probably be required for investment property.
Moreover, you will be required to acquaint yourself with the concept of negative gearing and capital gains tax if you are buying a property for investment reasons. Consult our team of mortgage brokers to help you make a well-informed decision, keeping in mind all the do’s and don’ts of the purchase.
This is a very critical factor when finding a property. To find out how much you can afford and where you can afford; you must first find out how much you can borrow. Similarly, decide what you are looking for. Do you wish to live in apartments, townhouses, or a residential property in a suburb? It is important to know that because the prices of residential houses are much higher than apartments and townhouses.
Make sure you account for any additional cost when making a purchase. For example, all apartments and some townhouses are strata title, which means you have to include the ongoing strata cost into your budget.
Finding a Suitable Area
The third most important factor you have to keep in mind is the area where you wish to live. However, when finding a property, try to be flexible. For example, it is likely that the places where you wish to buy are very expensive, but you may be able to get a house at a reasonable cost in a neighbouring area.
Everybody wants to live as close to basic facilities as possible. For example, if you have kids, you might want to buy a house in the area where there are schools, shopping centers, and other amenities. Similarly, if you are taking care of an elderly parent, you would definitely want to purchase a property in an area that has hospitals.
While everybody wants to buy a house based on their personal preference when you are finding a property, look for the surrounding areas as well; as this may enable you to buy a house at a much lower price and the amenities will still be within your accessible limit.
Seek Expert or Professional Advice
Whether you are buying a property for investment reasons or for residential purpose, it is important to seek the advice of an expert as they can guide you in the right direction, keeping in mind your financial goals and budget. Do your own research, but discuss your case with a professional advisor as well. Speak to our team at Hunter Galloway today for more information.