Buying real estate is an exciting time for anyone and let’s face it, buying a home is probably going to be your biggest single investment. Rather than jumping in with both feet, there’s a lot to consider when looking at buying property, which we examine in this article.
- Location – Ideally, you will be looking for an under-developed area where land prices are low and over the years, your equity will shoot up. Other aspects to consider are schooling for the kids, your place of work and the amenities you need. Of course, you have to balance many things and choosing a location should not be rushed. Either way, it is going to be a big financial commitment, so crunch the numbers.
- Cost – There are a lot of expenses when you buy real estate; aside from the sale price, you have legal fees, stamp duty and relocation costs. It is oh so easy to buy above your budget and end up struggling to pay the mortgage, so do make sure you have the funds in place before signing anything. There are some concessions for first-time buyers, such as you don’t have to pay stamp duty; it is worth contacting a good broker to find you the best mortgage deal.
- Building surveys – If you are interested in a residential property in Sydney, you need to have a few surveys carried out and if the pool is non-compliant, there are swimming pool certifiers in Sydney who can rectify that. It is the buyer’s responsibility if the pool has a non-compliance certificate and you must do this within 90 days of becoming the owner. Check that the property has no debt and there are no restrictive orders on that plot of land, while the structure should be of solid construction with no ground subsidence.
- Property potential –You might not be thinking of the future when looking at your first home, yet it is wise to consider the option to extend at some time in the future. If you want the best for your dollars, a rural location is recommended, where land prices are lower. House prices can vary greatly depending on location and if you want to make a good profit, search further out from the city.
It is always a good idea to do some online research into land prices and forecasts for a variety of locations before you start your quest for the perfect home.