What to look for when purchasing a property
While location, location, location is the catch cry of buying property, there’s a bit more to it than that. So, what exactly should you look for when purchasing a property? Does it differ depending on the type of investment; owner/occupier vs investment/rental property?
For Both – Owner/Occupier & Investment/Rental
Amenities
Consider how close the property is to valued amenities and facilities such as good school, main access roads, shops, medical centres and public transport.
The Future
Ensure all searches are undertaken to find any future plans for the area that could affect the livability and value of the property – is there a new train line going in over the back fence? Is the area zoned for high rises that could potentially block your view or shade your property?
Valuations
Particularly in Sydney recently, valuations are coming in under the contract price. While a small percentage difference is acceptable, the sale price exceeding the valuation by a large amount could be a concern and is something worth discussing with the Oak Financial Group team.
Off the plan
Buying a property off the plan begs for a large amount of due diligence on the part of the buyer. Conduct extra research on the area and the market and what both could be like in two years from now when you take possession of the property.
For Owner/Occupier
Lifestyle
Does the property suit your lifestyle now and for the length of time you plan to live there? Is this a property you could potentially expand as your family grows? Will it be too big in a matter of a few short years when the kids all head off on their own? These are important aspects to consider when looking for a property to buy and make your home.
Affordability
While interest rates are at a historic, all time low it’s definitely worth looking into the possibility of them going up and how that will affect the affordability of the property. If your mortgage is a struggle now, or will definitely take two incomes to meet then perhaps you should consider a property that’s more achievable. You really don’t want to live on two minute noodles for the next thirty years, do you?
When determining affordability also consider protection such as insurance, maintenance for the property, transport costs getting to and from the property to school, work, etc, and how you will afford any major repairs should they be required.
For Investment/Rental
Room to move
Buying an investment property or rental property with an additional room opens up the possibility of additional rental income. People will pay more to be able to share the property with a housemate or even be able to dedicate a room to a separate office. Just remember to keep the number of bathrooms proportionate to the number of bedrooms. Where a four bedroom, one bathroom might struggle to be rented, a four bedroom, two bathroom should be extremely popular and unlikely to be vacant for very long.
Power points
A great rental property in today’s market is one that offers easily accessible, numerous power points. Sound like a minor issue but today’s tenants want to be able to conveniently plug in and charge all their devices.
And from here you get to what to look for in a mortgage, bridging loan or investment loan and it’s here where our team can help. Contact Oak Financial Group today for help with what to look for and how to secure the right product and lender for you.
