Communication and planning are the keys to your success when entering the real estate market to buy a home or investment property.
Actually, let’s clarify that with an investor’s insider tip: Any property you consider buying should be viewed as an investment, whether you plan to rent it out or not. So be sure you like the potential growth prospects for the area and property itself as much as you like the floor plan or the stylish renovation work done by the seller.
It’s best to be clear in your own mind about your expectations and plans for the future before you start house hunting. You’ll find you get better results in the initial search for the property to buy and the end result of the negotiation because you knew what you wanted to achieve from the outset.
You may want to consider getting some help along the way, and a buyer’s agent will discuss your plans upfront to be able to serve you the options that meet your goals.
So for the best outcome consider the following questions and be clear about your needs and goals so you can write them down so that you can refer to them confidently in conversations with agents, and to remind yourself of what’s important to you when it comes time to sign on the offer to buy:
- What are my main aims and objectives in buying a property?
- Where do I want to buy (do I want a specific suburb or type of area) and why?
- Do I have a specific type of property in mind? i.e. Villa/townhouse, house, apartment, development property
- What sort of condition must the property be in? Am I prepared to undertake minor renovations, major renovations or must the property need no work at all?
- How old a property am I looking for? i.e. Do I want a property where more of the value is in the land or the home?
- Are there other preferred features I am looking for?
- Whose name will the property be bought in?
- How much am I willing to spend?
- How much money will I need to borrow and how will I finance the purchase?
- What sort of rental return am I looking for?
- What are my yield and growth expectations? i.e. Do I want a higher yield, lower growth property or vice versa?
- How long do I intend to keep the property?
As a final tip, don’t forget to help your agent understand the reasons for your choices.
The answers to these questions will give you the clarity you need to make objective decisions and get the most out of your property investment search and keep you moving in the direction that will help you achieve your financial goals.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.