The most important thing a buyer has to do when looking for a house is to get a basic understanding of the entire process. Consult our team and carry out your own research, especially if you are a first-time home buyer. It will help you make the right decision at the right time.
There are a number of online pages available where you can look for properties, such as domain.com.au, or realestate.com.au. However, there are so many houses that are not advertised on the internet. In that case, you can also call a real estate agent to get information about properties available in different territories and states of Australia.
Things to Consider When Finding the Right Property
t’s important to conduct thorough research, to make a well-informed decision. Below are certain things you should consider when finding the right property:
- Sign up for Alerts – To get the latest information about available properties in the market, sign up for real estate alerts. Different real estate websites give you an option to use this service for free so when a new property is available on their portal, you get an instant notification.
- Compare Prices of Different Properties – Print out all of the property prices you plan to visit and compare them, as it will help you assess their condition, keeping the price factor in mind.
- Attend Auctions and House Inspections – Even if you don’t intend to buy a property yet, visit as many inspections and auctions as you can. It will help you find out how many people are actually willing to buy a property and what price are they willing to pay it.
- Be Flexible – Finding the right property is not easy. This is why it is important to keep your options open. Don’t restrict your research to the area where you intend to buy a property. Search the surrounding areas as well. In most cases, you can find a really good house in neighbouring suburbs at a very reasonable price.
Bad Agents Can be Useful
Sometimes the bad agents who don’t give you accurate listings or take your phone calls can have some properties that may interest you, but they are unable to feature those houses online due to their poor advertising skills. In that case, you can ask the agent to show you a list of all the properties they have in their database.
Lenders Do Not Approve All Properties!
It’s true. This is one of the main reasons why finding the right property is so important. Many lenders approve your loan by keeping your property as a security. But if they are not satisfied with the property condition, they may not approve the loan. This is why it is important not to buy a property before you apply for your loan, as you may end up losing your initial deposit.
Keep the following tips in your mind as a general rule when finding the right property that a lender would approve:
- The unit should be at least 50 m² excluding the parking garage and balconies
- Some lenders don’t approve a property if land area is more than 2 hectares, but it varies from one bank to another. There are some lenders who also accept a property as a security even if the area is 50 hectares or higher.
- Some banks reduce the loan to value ratio if the property is located in the remote area.
- Banks may value the property way less than its purchase price if the seller has included furniture in the purchase price, and offers a settlement rebate and rental guarantee.
All in all, the property has to be in a good condition if you want the bank’s approval. In addition to that, make sure that when finding the right property, you get the building and pest inspection done and get a strata report, especially if you’re buying townhouses or units.