Buying a property is exciting. It’s a huge milestone, and one that can come with a lot of surprises — both good and bad.
Since the process of buying a property can be long and drawn out, it’s important to be as prepared as possible before you start. Here are 8 essential considerations to keep in mind before buying property:
One of the most important things to consider when buying property is its location. You’ll want to think about things like the surrounding area, public transport, schools, and hospitals in the vicinity.
You’ll also want to consider whether the property is in a growth area or not, especially if you’re buying it for investment purposes. This will help you to determine whether its value is likely to increase over time.
To determine whether the location of your desired property is appropriate, we recommend:
- Researching the surrounding area using Google Maps or a similar service
- Checking public transport routes and distance to key amenities
- Looking into the demographics of the area. You can do this by searching for the area on the Australian Bureau of Statistics website.
2. Size and layout
Another important consideration is the size and layout of the property. Make sure to take into account your own personal needs and wants, as well as any future plans you may have.
For example, if you’re planning on starting a family in the near future, you’ll need to make sure the property is big enough to comfortably accommodate a growing family.
On the other hand, if you’re buying an investment property, you’ll want to make sure the layout is such that it can be easily rented out. Here are 5 other tips to consider when buying investment property.
Some other things to keep in mind with regards to size and layout include:
- The number of bedrooms and bathrooms
- The size of the kitchen and living areas
- Whether there’s enough storage space
3. The type of property
There are many different types of properties available on the market, from apartments and townhouses to rural acreages.
It’s important to think about the type of property that best suits your needs and lifestyle. For example, if you’re looking for a low-maintenance lifestyle, an apartment might be more suited to you than a house.
On the other hand, if you’re looking for a property with some land that you can use for gardening or other hobbies, a house on an acreage would be more appropriate.
4. Age and condition
The age and condition of a property is another important consideration.
A newer property is likely to have more features and be easier to maintain than an older one, but it will also generally be more expensive.
An older property, on the other hand, may be more affordable but will require more work to bring it up to scratch.
It’s important to strike a balance between age and condition, and to factor in the cost of any repairs or renovations that may be needed.
You’ll also want to consider the construction quality here, which refers to things like the materials used and workmanship. The best way to do this is to have a structural engineer analyze the property.
5. Your financial condition
Of course, one of the most important things to consider before buying property is your financial situation.
You’ll need to make sure you have a realistic idea of your budget, as well as any potential loan repayments you’ll need to make.
It’s also a good idea to get pre-approval for a loan before you start looking at properties, so you know exactly how much you can afford to spend.
Many people believe that casual workers are not eligible for home loans, which may be worrisome for you. But Joust explains that getting a home loan on casual employment is possible if your financial credentials are good.
Finally, you’ll want to think about the down payment, which is one of the greatest hurdles buyers face when looking for property. The standard down payment is 20%, but there are many ways to reduce this amount.
Down payment assistance programs are especially helpful when you’re trying to buy your first property. They include things like the First Home Loan Deposit Scheme, which offers eligible buyers the opportunity to purchase a property with a deposit of as little as 5%.
6. The right time to buy
The timing of your purchase is also an important consideration.
For example, if you’re looking to buy an investment property, you’ll want to make sure the market is healthy and there’s a good chance of capital growth. The best way to ensure this is to speak to a real estate agent.
On the other hand, if you’re buying a property to live in, you might want to wait for a buyer’s market so you can get a better deal. A buyer’s market refers to a period when there are more properties for sale than there are buyers, so prices are generally lower.
7. Legal aspects
There are a number of legal aspects to consider before buying property.
For example, you’ll need to make sure the property is properly zoned and there are no outstanding planning approvals or building permits.
You’ll also want to check that the property doesn’t have any easements, covenants, or other restrictions that could limit what you can do with it.
It’s a good idea to engage a conveyancer or solicitor to help you with this process.
8. Your other goals in life
Buying property is a big commitment, so you’ll want to make sure it aligns with your other goals in life.
Many young people try to buy a property just for the sake of it. If you think spending money on a property will hamper your ability to achieve other goals like travel or starting a family, then it might not be the right time for you to buy.
The bottom line
There are many things to consider before buying property. These include things like the location, type of property, age and condition, your financial situation, and your other goals in life.
The most important thing to do is to research and seek professional advice before making any decisions, as buying property is a big commitment. Good luck!