1. Know your Area
When looking to buy a property, make sure to research the area extensively. The
more educated you are, the easier the process will be.
Knowing the demographics of the area can help your decision on which suburb to
buy in and how it may benefit you as a resident or Investor.
Ideally you would like to have amenities within a short walk or drive. This will add
value and attract residents to the area. It will also help when it’s time for you to sell.
The things to look for are:
Schools, Public transport, Shopping Centre’s, University/TAFE, Leisure Centres/Gyms,
Restaurants/Cafes, Sports Fields and RSL Clubs.
Walking through as many Open Homes as possible is an important part of the buying
process. This will educate you on the current market conditions, recent sales in the
area, but also provide factual reasons for why properties sell for the price they do.
For example, when looking at properties on the internet, it is hard to determine the
actual size of the home, however when inspecting the property, it will be obvious if
the home is above or below average size.
Make sure to speak with your bank or a mortgage broker on the amount you can borrow
before you start actively looking. This will help guide you in the right direction for which
areas and properties you can afford. It will also put you in a better position when making
an offer, as you will be pre/financed approved.
Know what your limit is and have a 10% deposit ready, generally this is the bare
minimum, especially when buying at an Auction. (At an Auction, you are required to pay
a 10% deposit on the day if your successful, unless you have negotiated otherwise).
3. Professional Advice
When you find a property that may be suitable, it is now time to engage with a
solicitor/conveyancer to review the sale contracts. They will review everything including
zoning certificates, Inclusions and exclusions, settlement date, sale price, any special
conditions, sewer diagrams, title search etc.
At this time, it may also be a good idea to engage a building inspector or to review the
Strata Report (if property is a part of a strata scheme).