Purchasing Property: What You Need to Know to Get Started!

Searching for your next home? This article will breakdown a few tips to help you better understand and prepare you for what to look out for and what you need to consider prior

Investing in real estate that suits your needs can be incredibly beneficial. Whether it’s for a future family home or an investment opportunity, knowing what to look out for and what will most likely benefit you and your finances long term. Gathering the right information and research can help you make informed decisions regarding your property.

This is where a property valuation is recommended, A property valuation depending on the purpose related to your property type is a process that determines the true value of your property. By seeking out a property valuation you will be assigned an independent property valuator who has local knowledge and expertise of the market and is specialised in the field of real estate property valuations.

The valuer will complete a comprehensive detailed report to analyse the property to determine the fair current market value and include:

• Information of the property, including property type, use, size, and location
• Details of the property, such as its overall condition, materials used in construction, and fixtures and finishes 
• Local market evidence from comparable properties, as well as the details of the properties assessment of the current market conditions

             

Before you receive a property valuation, you need to find the property of your dreams. Here are a few tips that can help you understand the market and what you require to find your house.

Finances

Budgeting will become your new favourite word. This is the most vital part before you even begin looking at properties.  Sorting out your finances and determining the amount you wish to spend on a property, to help calculate your budget.  This may be by understanding your current equity, expenses, and your income. Having the money for a deposit is one thing but being able to pay off your mortgage repayments every month is something that can’t be overlooked. Do your research into any additional charges that you may encounter, like stamp duty. Having the extra money saved in your budget to account for any surprise payments you may receive.

When you have a clear understanding of what you can afford, you can begin to determine what your mortgage and house price budget is, and this is where a property valuation can come in as they can completed a pre-mortgage valuation on a property of interest to help calculate to true value and that can save you from paying more than what the property is worth. Along as you stick to the budget and don’t compromise- your budget will help keep you inline with what property expectations to look out for and the areas you can afford.

Property Type

Once you have your budget decided, this will narrow in the type of property you will be looking to purchase. The type of property you want will also help guide what you can afford, whether this is a free-standing house or a two-bedroom apartment. It’s a great way to eliminate what you want in a home and what you actually need. Whether you are purchasing a property as your forever home or as an investment opportunity. It all comes down to what you want to get out of the property at the end of the day.

Location

Once you have determined the amount you wish to pay for a property and the type of property you’re after, you can start deciding on location and if it suits your needs. As they say location is everything, this can be tricky if you are set on a certain location, but the house prices are out of your reach.

Location is usually more of an emotional choice, but you have to be realistic, doing your research of various locations and what the areas have to offer as well as the crime statistic and the property sales, look into the average amount of days a property stays on the market, this will give you a strong idea of how the local market is. Whether this is a forever home or an investment you have to consider family, proximity to work and schools, but you need to see future potential, is it a growing area, views, noise and is the neighbourhood safe. Keep in mind that property prices are largely influenced by the location of the property.

In Conclusion

Now that most of the external research has been completed, you know what you want, what you can afford and the area you are interested in, you can begin to inspect future properties.

Upon inspecting a property, don’t compromise on the smaller issues as they may turn into bigger issues down the track. Once you have narrowed your search for properties that you are willing to buy, this is where you will require your property valuation.

Depending on your requirements and any concerns you may have on the property that will be inspected you will speak with the valuer prior to the inspection to ensure they understand your expectations. This type of service offered is often referred to as a pre-purchase valuation.

Keep in mind the valuator will be local to the area, will factor in the property type, such as size, use and location, any external overall conditions of the property (fixtures and finishes) and lastly the local market evidence for comparability to other properties. Once the inspection has been completed you will receive a detailed report that will comprise of the true accurate market value of the property, which will help determine if it truly is within your budget and you can use this to negotiate the asking sale price of the property if the asking price was way above the valuation report price you received.

No matter what you want to ensure a good return on your investment, researching key factors are important in all your decision making from budgeting, property type and location.  Speak with our team of experts to help you with your next property related decision.

Author Bio

John Anderson – LinkedIn Profile

John Anderson is one of Melbourne’s leading experts in commercial and residential property valuation services. John is a registered Chartered Surveyor and Senior Property Valuer with over 20 years of professional experience providing property valuations across Melbourne and Victoria. His in-depth expertise in real estate and property has allowed him to share his specialised knowledge as an authority keynote speaker at conferences and universities across Melbourne.

realtyWW September 16, 2021