Top tips to buying property

If you are in the market to buy a property, here are some points to consider:

1) Do your research To avoid paying more than a fair price, inspect as many properties as you can and follow sale prices in the areas you are considering.

Look for suburbs you can afford that are close to high performing suburbs. Often there is a flow on effect as buyers realise they can’t afford the suburb they really want to live in.

Look at the infrastructure and amenities within the suburb you are considering. Does the property have access to main roads?

Is the property serviced by public transport? Shopping centres, schools, sporting grounds and churches are all important to buyers.

2) Buy Smart When attending open homes and inspections look past the “staging” of the property. Smart vendors often decorate homes to win hearts and increase prices. Make sure you see the real value of the property.

Inspect the property several times before you make an offer. Understand the floor plan and make sure it suits what you really need and want.

Get a structural report from a builder and a pest inspector, to make sure the property is sound. If the property needs renovation, get a quote before you purchase to ensure you can achieve what you want within budget.

3) Get good legal advice Make sure you get the contract of sale reviewed.

A solicitor or conveyancer will also be able to identify issues with the Deed of Title and any prospective ownership issues. Strata title management clauses should also be looked at and State Authority rights relating to zoning and future development should be investigated.

A good solicitor or conveyancer will assist you on all these issues.

4) Know your borrowing potential

It’s a great idea to see a mortgage broker that will get to understand your situation and look at the products available in the mortgage market that suit your needs.

Try and get a real understanding of realistic borrowing levels for your situation.

5) Get an insight into how to negotiate

Often buying a property takes skilful negotiation and if the property you are buying goes to auction, bidding can be quite nerve wracking.

You may have a friend/ family that are already skilled at auctions / negotiations.

Depending on your purchase price point you could consider using a buyer's advocate. They can help take the emotion out of the purchase, but of course they charge for the service.

6) Understand if the property meets your lender's policy

Each lender has their own policy about the security being offered and if it is acceptable to them, and the maximum loan to valuation ratio.

Lenders have very strict lending guidelines and policies.

The type of property you are offering as security needs to meet those policies.

No matter how strong your application if the property does not meet lending policy, the loan cannot be approved.

Some examples of what may need to be considered

  • In a high density or restricted postcode

  • Proximity to a town

  • Near high voltage power lines

  • Building cladding

  • Building has a Management Agreement

  • Earns rental income as holiday rental e.g. Air BnB

  • Off-The Plan Purchase

  • Your lender has reached their lending exposure for the development