Purchasing a property is one of the biggest financial decisions most people will ever make. Whether you’re a first-time buyer, upgrading to a larger home, or investing in real estate, there are several factors to consider before making a purchase. In this article, we will explore what you need to know before you purchase your next property.
1. Determine your budget
The first step in purchasing a property is determining your budget. This includes not only the purchase price of the property but also other associated costs such as stamp duty, legal fees, and building inspections. You should also factor in ongoing costs such as mortgage repayments, council rates, and maintenance costs.
2. Research the market
Before you start looking at properties, it’s important to research the market to get an idea of property values in your desired location. You can use online real estate portals or attend open inspections to get an idea of what properties are selling for in the area.
3. Location
The location of a property is one of the most important factors to consider when making a purchase. Consider factors such as proximity to schools, public transport, shopping centres, and other amenities that are important to you.
It’s also important to consider the long-term prospects of the location. Is the area undergoing development or expected to grow in the coming years? Is it a desirable location for renters or potential future buyers? These are all factors that can influence the value of your property over time.
4. Building and Pest Inspections
Before purchasing a property, it’s important to have a building and pest inspection conducted by a qualified inspector. This can identify any potential issues with the property such as structural damage, defects and pest issues. A building and pest inspection can potentially save you thousands of dollars and help you make an informed decision about your purchase.
5. Legal considerations
Purchasing a property involves a significant amount of legal work, so it’s important to seek the advice of a qualified solicitor or conveyancer. They can guide you through the legal process and ensure that all contracts and agreements are legally binding and in your best interests.
6. Strata properties
If you’re purchasing a strata property such as an apartment or townhouse, it’s important to consider the strata fees and any associated bylaws. Strata fees can vary significantly between properties and can add significantly to the ongoing costs of owning a property.
7. Finance options
There are several finance options available when purchasing a property, including fixed-rate, variable-rate, and interest-only mortgages. It’s important to do your research and seek advice from a mortgage broker or financial planner to determine the best finance option for your individual circumstances. It’s also important to consider any government incentives or grants that may be available.
8. Insurance considerations
Owning a property comes with certain risks, so it’s important to ensure that you have adequate insurance cover. This may include building insurance, which covers damage to the physical structure of the property, and contents insurance, which covers the loss or damage of personal belongings within the property.
You should also consider landlord insurance if you’re purchasing an investment property. This can cover you for damage caused by tenants, loss of rental income, and other potential risks.
9. Building and renovating
If you’re purchasing a property with the intention of building or renovating, it’s important to consider the costs involved and any legal or planning requirements. This may include obtaining council approvals and permits, engaging architects and builders, and complying with building codes and regulations.
10. Seek professional advice
Finally, it’s important to seek professional advice throughout the property purchasing process. This may include advice from a financial planner or mortgage broker, a solicitor or conveyancer, and a building inspector.
Seeking professional advice can help to ensure that you’re making an informed decision and can potentially save you thousands of dollars in the long run.
If you are needing a building inspection completed for either a property you are buying or selling give us a call on 0438 439 388. We will be happy to provide you with a free quote and a quality report, so you can purchase with peace of mind.
