If you’ve decided that 2016 is the year that you’re going to buy your first home, upgrade to something a little bigger, or purchase an investment property, you’re making a great decision.
While experts are continually talking about whether or not the housing property is going to explode, as long as you’re not choosing to buy in the middle of cities like Sydney and Melbourne, owning property still remains one of the best ways to ensure that you’ll be financially independent and able to retire with financial security.
We’ve all heard the horror stories though, and let’s face it- it’s easy to make poor decisions and end up in a pretty bad financial situation. This is why it’s a good idea to make sure you’ve done your due diligence before jumping into anything- after all, informed buyers are smart buyers.
Once you’ve decided that you want to purchase a new property, it can be easy to get caught up in the excitement and feel like you need to buy a property….NOW! Instead, this is the time to dot your i’s and cross your t’s, speak to experts, and take a long, hard look at the market.
If you’re hoping to flip the property, look at how the market is performing in the short term, since real estate generally performs better over the long term. With all of the fees associated with buying and selling property it can be better to think about how long you’ll have the property for- are you considering raising a family in the next few years, and if so, will there be enough room?
This is also when you need to look at the overall area of the property. Is it close to key amenities like public transport? Try to get the low down on how the neighbourhood is changing- are they planning to add a new school? How’s the crime rate?
Once you’ve found a property you love, it’s important to check out the area. Visit at different times of the day so you can get an idea of the noise and see if you can find any deal breakers.
Obviously, one of the biggest things to consider before buying new property is the state of your finances. While you should obviously be able to cover the mortgage, it’s also important to consider what you would do in the case that you or your significant other loses their job. When it comes to your home loans, it’s a good idea to shop around. You can save on variable rate home loans by NPBS, so be sure to make a good choice as the loan you choose will impact how much you pay each month.
It also sounds obvious, but make sure that all necessary inspections have been completed before you agree to go ahead with the purchase. This will mean you’ll be able to rest assured that you won’t have any structural damage or pest.
