It may seem that now is not the time to buy property – the economic climate may have spooked all but the most seasoned property investors.
However, if you stick to Marquette Turner’s basic rules below you will certainly be on the right course.
1. Set your budget. Have a meeting with a mortgage broker or financial planner to determine what you can comfortably borrow. With the current interest rate increases, it is important to consider all the options, from a fixed to a variable loan.
Some buyers choose to have 50% of their mortgage fixed and 50% variable, so that they reduce the risks associated with increasing rates. Knowing what you can spend should include all solicitor’s fees, duties payable and even moving costs. This allows you to finalise all the numbers and to enter the market with confidence. It also ensures that your head remains in charge and your emotions don’t try to cash cheques that your finances won’t allow.
2. Develop a list of all the things the property must have. For some people, bedroom and yard sizes are the most important, while for others functionality of the kitchen and bathrooms play a vital role.
Although you can always renovate or upgrade components of the home, make sure you have allowed for these additional expenses in your budget.
3. Work out your preferred areas. It is possible to have the same home on two different sides of a street and have two very different sales results. Consider what you can purchase for the money you have available.
Before you purchase, consider how long you will be in the home. If you intend to stay for a long time, then views might be a really important factor as opposed to a slightly better home at the time of purchase.
4. Communicate with your agents. There are a lot of people who are thinking about doing something in real estate. Often, the speed of inquiry can make you feel that the agents don’t care about you and your purchase.
To find the best homes, you may wish to keep in contact with a few key agents to keep abreast of what is coming onto the market. Also, don’t treat the agent as the enemy – too many people attempt to keep their cards close to their chest and not converse with the agent. This is a mistake as they are ultimately the ones that can help you and the process the most.
5. Be savvy & knowledgeable Doing your research doesn’t simply mean looking at many properties to get an idea of what’s on the market. It’s also about knowing the processes involved and the questions to ask. Knowing what the economy is doing, is likely to do, and the different nuances involved in different areas – the potential benefits and pitfalls – is extremely important.
Keep your ear close to the ground, read the news as often as you can, and our best suggestion is to checking out Marquette Turner’s blog every day for new (and previous) stories.