Buying your first home or investment property is exciting! But where to start your planning? We’ve put together the essential steps you should include in your property research checklist so you have the perfect property hunting adventure!
1. Research your borrowing power
This first step is as easy as picking up the phone and making an appointment with your Mortgage Broker. They will help you determine your borrowing power and give you a clear understanding of how much you can realistically afford to spend on your new property. Having an accurate idea of your borrowing power will help ensure that you’re looking in the right price range from the very start.
2. Research the criteria for your desired property
It’ll be easier to research the property that you’re looking for when you have a set of criteria. With a lot of quality properties to choose from, it’s easy to fall in love with aesthetics, so it’s important to make sure that the property meets your requirements. Here are some useful questions to ask yourself when listing down your set of criteria.
- What is your main purpose or reason for buying a property?
- How long do you plan on staying in the property?
- Do you have a budget for ongoing repairs and maintenance?
- Who would potentially rent your property or buy it when you decide to sell?
3. Research the suburb and the surrounding area
Where do you plan to buy? Whether you’re a home buyer or an investor, the aim is to purchase in a suburb with solid capital growth potential. It’s also better to buy in a suburb where it’s in its early stages of growth, rather than at the peak of a growth cycle. The surrounding area is also worth looking into. Get to know the local transportation situation, as well as local facilities located at a walking distance or just a short drive away. We can provide you with a comprehensive market report – please reach out if this would be helpful for you.
4. Research the property
When inspecting the property, check both the inside and outside conditions. Here are some items to include in your checklist.
Inside:
* Check the ceilings for water stains and the cornices for waviness – indications of water leaks
* If there are carpets, check the situation underneath – if there’s cement or floorboards
* Be mindful of the evenness of the floor
* Get in touch with us for referrals on building & pest inspections
Outside:
* Check for cracks in the brickwork
* Check for mildew in the eaves
* Be mindful of cracks in the driveway
5. Research the price
It’s best to compare prices with other recent property sales in the same location to make sure that you’re getting a reasonable deal. Don’t forget to also include ongoing costs in your budget. Research the ongoing costs that will be applicable to your desired property, such as council rates, strata fees, and water costs.
6. Research the rental yield
Consider the average rental yield of the area and the property. This means finding out the potential rental income. If there’s a strong demand in the area, the rental yield may be higher. On the other hand, if there’s a high vacancy rate, the rental yield may decline. We can help you with this data – including details about median prices, growth rates, and rental yields. This part can get technical, but you can ask us for a property report and we’ll gladly explain the details to you.
7. Research the history
You may want to get to know the property a little bit more by researching its history. You can trace the history of a property through online archives, street directories, council rate books, and Title Office records.
8. Research the professionals you’ll need
Make sure to consult with reliable professionals who can give you advice that’s useful in your property hunting journey. We can give you referrals and you can also do additional research. Best practice is to ask for recommendations from friends and family based on their experience with that service provider. You can also check reviews and testimonials.
We can’t stress enough the importance of doing plenty of research before purchasing a house or an investment property, but we guarantee that the effort will be well worth it in the long run. And of course, we are here to help you every step of the way!