A few hints BEFORE you buy your property

PROPERTY RESEARCH CHECKS

Just like when you decide to go on holidays and you start researching all of the fun things you can do.

The excitement begins, you may find yourself sneakily looking up extreme adventure activities, Googling accommodation options or browsing travel photos at midnight. The venture of buying property requires a similar level of enthusiasm and commitment to research, the eventual purchase will feel even better than the holiday.

Check your borrowing power

You don’t actually have to do much here, all that’s required of you is to contact your mortgage broker, and they’ll determine your borrowing power and give you a clear understanding of how much you can realistically afford to spend. You need to let them know your income, expenses and they’ll get to know you financially to give you an accurate indication of what you can afford and ensure you’re looking in the right price range from the very start.

Suburb Research

Whether you’re a homebuyer or an investor, it would be good to buy in a suburb with solid capital growth potential, and to buy at the early stages of an upturn, not at the peak of a growth cycle.

There are plenty of online resources on specific areas that contain details about everything from median prices and growth rates to rental yields and demographic trends. RP Data CoreLogic, realestate.com.au, Residex and domain.com.au are just a few examples, you can also ask an agent for a property report.

check before you buy cairns real estate

Research the property

At the inspections go through the property with a fine-toothed comb. Inside the property, check the ceilings for water stains and if there are any uneven cornices, this may indicate water leaks in the roof. If the property is carpeted and you want to pull it up, find out whether there’s cement or floorboards underneath, be mindful about the evenness of the floor. Before you buy, it’s always a good idea to a get pest and building inspection. This peace of mind is worth the fees.

Outside, look at the condition of the walls and gutters, check for cracks in brickwork and for mildew anywhere. For example cracks in the driveway may mean there’s a lot of ground movement on the property.

What price/value?

The best way to research the value of the property is to compare other recent sales prices for similar properties in the same location. You can find recent sales on websites like realestate.com.au. Be sure the land size is similar and the condition of the property is comparable. Attending many property inspections will help you to formulate a clear picture of the going rate for similar properties. Finally, it’s important to research additional ongoing costs such as the council rates, strata fees, and water costs.

The professionals you may need

During the buying process, you’ll need some professional support, such as a mortgage broker, a solicitor, and building and pest inspectors. When deciding who to use, it’s a good idea to ask friends and family for recommendations. Here’s a hint, check each service provider’s online reviews.

You can understand the importance of doing plenty of research before buying property, the effort will be well worth it in the long-run.

You may even find it becomes more addictive than planning a holiday!

Also see our buyer’s advice page.