Buying a home or investment property is not something that most of us do without a whole lot of thought and consideration. It’s probably the biggest financial commitment you’ll ever make, with the most potential to make you a lot of money if done well.
Research is vital to the success of your investment.
If you’re buying a home to live in, you need to make sure that both the home and neighbourhood will work for your lifestyle now and for the next few years. You want to know about any planned infrastructure changes and local developments. Researching the street, local amenities, recent sales prices and even the neighbours can be a good thing.
Taking it one step further, you can also research the sales history of the house and the neighbouring properties. This will tell you how many times the property has been sold recently and the sales price. If a house has changed owners a lot, it would be worth looking into why that could be.
An independent building inspection is also vital. Don’t rely on the one supplied by the real estate agent. Remember that they’re employed by the vendor and their inspections are often not completed by licensed builders.
When it comes to an investment property, you want to make sure firstly that the numbers add up and that you’re aware of the required cashflow to hold and maintain the property. Secondly, you want to make sure that you’re buying in a location that has strong rental demand and that the property you’re interested in will stand up to the competition when you’re looking for a tenant.
When it’s time to secure finance, you don’t want to take the first product that you’re offered. You want to make sure that you get a great rate and all the features you need. You want to know your options and then make a decision based on what you want.
Research is key. If you need help, let me know.
This is one thing you can’t skip on.