What to research before you buy a property
Purchasing a property is both a significant financial investment and also an emotional one. And it’s not a purchase you should make without proper due diligence.
But when it comes to researching before you buy, what sort of things should you be looking at?
Your budget will determine the price of the property you can afford, so it pays to get across the financial side of things long before you start your property search.
That means talking to your bank, lending institution or a mortgage broker to see what options are available to you.
You are also going to want to get up to speed on all that home loan terminology such as fixed or variable rate, lender’s mortgage insurance, the interest rate, and also loan terms so you can make an educated decision on which loan will be right for you.
You probably have a fair idea which suburbs suit your wish list, but it pays to do some research on future plans for those regions, such as pending infrastructure or major developments.
For example, could a highway be planned nearby, or is the airport being extended and six months from now your new home will fall under the flight path?
Your local newspaper or council are often the best places to find this information, but don’t overlook the importance of actually spending time in the region you plan to call home.
Visit the suburb at different times of the day, try commuting to it from work, or go shopping there. This gives you a true sense of what it will be like to actually live there.
Current market conditions in an area will help you get up to speed on how much a property is likely to cost based on recent sales, time on market, capital growth etc.
This is where data from sites like PropertyValue and realestate.com.au can be invaluable. Together they provide suburb profiles and data like median house price, rental yield, annual price change percentage, along with population demographics.
Property titles and council planning
As part of any transaction, your conveyancer will complete tasks like performing a title search on the property. However, it also pays to be proactive about any specific property you might be interested in.
That means prior to becoming emotionally invested in a property purchase you should be looking at the property’s zoning, any covenants that might apply or its historical significance.
Also check the town plan for the applicable region to ascertain what council might be seeking to do in the future, and while you’re there look for issues like flooding.
Things like development height restrictions are another thing to consider. After all, is there a chance you may move into your dream home, only for a three-storey unit block to spring up on the vacant land across the road?
The final word
Buying a property should be an exciting experience and one to celebrate as you turn the page on the next chapter of life.
That said, it pays to ensure you are well-informed and properly educated as you turn that page, so you can rest assured the new property you’ve fallen in love with will still be the place you want to call home after moving in.
Considering buying or selling a property? Why not chat with one of our friendly Eview agents on 1300 438 439 or see the properties we currently have for sale here.