The decision to buy property is one of the biggest – and most complicated – you will make. Not only is it one of the largest financial transactions you make, there are a lot of things to consider when buying a property.
If it’s your first time, the whole process can be very daunting. To make it a little easier, here are four questions we recommend you ask yourself before you buy property.
Are you ready to buy property?
Before you start looking at places, you need to make sure you are fully prepared for the process.
From a practical perspective, the first step is to have finance in place, don’t waste time looking at properties before you have completed this step. Arranging your finances will help determine your budget and mean you’re ready to go when you find the right place. It’s also good to have a team of professionals around you– like a conveyancer, mortgage broker, real estate agent or buyer’s agent – who can answer your questions and guide you through the process.
You also need to make sure you’re emotionally ready. Buying property can be a bit of a roller coaster with emotions running high at times, so it’s best to start out with a clear understanding of why you want to own real estate. Keeping this in mind throughout the process will help you ride out the highs and lows. It can be disappointing and heartbreaking when you miss out on an ideal place, if this happens, you need to reflect, adjust your approach and get back out there.
Is it a good time to buy property?
The real estate market is impacted by so many different factors, such as interest rates, lending environment, performance of the economy – both on a local, national and global levels, demand and supply for housing, government changes and regulations, infrastructure, media and more, so it’s really hard to accurately predict the peaks and troughs. However, it still pays to do your research as there will likely be a best time of year to buy property in your target area. Suggest you follow leading property experts for tips and insights.
And, don’t just listen to what’s reported in the media. Most of the time, commentators are making general statements about the property market– you need to drill down to specific areas and suburbs. The best time to buy real estate in Sydney can be more specific to when you’re ready to buy rather than what’s happening in the market. It really helps to take a longer-term view as property generally performs well over the longer time. How many times do you hear friends or family tell you how much they paid for a property and you say wow that was cheap – but it was all relative.
What are your must haves?
It’s an unfortunate reality that finding the perfect property is almost impossible. Some buyers find out the hard way and after a period of time they reflect back to when they started searching and realise they had missed out on some properties that would have suited them. As such, it’s critical you understand what you really need and what you’re willing to compromise on.
Location is the most important aspect in finding a suitable property, best not to restrict yourself to 1 or 2 suburbs, be open to a number of different areas and suburbs.
In addition to the number of beds, baths, and parking, you should also consider things like aspect, natural light, condition, outdoor space, proximity to amenities, and commute time. It’s also good to think about what your future needs will be, as the costs of buying and selling property are high.
Does the place “feel like home”?
Buying a home is ultimately making an investment in your future. So, while it’s important to make sure the numbers stack up, it’s equally important that the property fits your lifestyle.
When you’re walking through a potential purchase, ask yourself if you can imagine living there. Try to look past things like the way the property is presented, condition, paint colours and flooring choices – which can be easily changed, if budget allows – and think about if the space, location, and layout really suits you.