Mistakes to avoid
Getting stuck with the wrong property in the wrong area!
When purchasing a property, the first step is to do a
budget. While there are many types of properties, most people buy residential homes
to live in or as an investment.
Owning a home is something most people aspire to as it gives
security in old age as well as an asset that can be used or given to family.
About a third of Australians own their own home, a third are
renting and the rest are paying off their home. ( contact us to see if we can
help)
What do you want to happen when you buy a property? You want the property to increase in value
and to see the loan go down.
For the loan to go down you need to earn more money and put
it into the loan to pay off the principal. This can come from a higher paying job or from
an increase in rent.
Property prices go up when there are more buyers than seller
and the buyers are prepared to pay more money.
If buyers who earn more money move into an area property prices usually go
up but so do the quality of houses.
If you see an area when property prices are high, usually
the properties have been renovated.
In an area of demand where residents have good income ( often a short distance from the centre of the city and
close to amenities and facilities) land
prices tend to gradually increase.
There are usually in areas where land is in short supply or non-existent.
So what is the secret to buying a property that increases in
value and where the rents increase?
It is essential to
think with the head rather than the heart.
First, look ahead to where your property and the area will be
in ten to fifteen years’ time.
Will there be more land released over that time? This usually happens on the outskirts.
While it is difficult to predict what will happen, it is
better to make an attempt than not to.
Will the population of the area keep going and will wages keep
increasing?
Once an area starts improving, it usually keeps going as
residents invest in their home’s appearance and the council and governments put
more resources into the area to make it a more pleasant place to live.
This sees the rates increase which gives more revenue to the
government.
Ask lots of people opinions about where you wish to buy and
how you should go about it.
Finally, you have to do your own homework and research.