We are often asked- what are the top tips for buying real estate? In this post we will list a few of the top tips we have implemented over the years that have proved successful.
Whilst there is no guarantee that buying real estate will lead to wealth, what is known is that over the long term, the price of real estate will increase in value and protect you against inflation. The key to ensure high probabilities of success is that you buy quality real estate that will continue to be in demand into the future.
Even in a very slow real estate sales market, quality real estate in well located areas will always be in demand from tenants who like to live in the better suburbs. At the end of the day, there will always be a business that is earning good income, with employees that want to live close to their place of employment – this is generally in one of the main cities.
You want to be investing in real estate where there is limited supply and little chance of substantial increases in supply.
In summary, set out below is a couple of tips for real estate buyers in 2019:
- Buy “A Grade Locations” – Buy properties that will always be in demand. For example, properties close to the major cities. In Sydney, they are areas like Bondi, Bronte, Mosman, Neutral Bay, Elizabeth Bay, Paddington, Double Bay, Darling Point, Rose Bay etc. Being so close to the city, these areas will more than likely be still in demand from city workers into the future.
- Avoid buying “off the plan” – When you buy off the plan, you don’t know what you are buying. You cannot see, feel, touch the property. You cannot see what views a property will have. You don’t know what the quality of the inclusions will be like. You don’t know what the quality of the build will be like. There are just so many negatives to buying off the plan. It is better to just wait to see what the product is like. If the product is any good, there will be opportunities to buy in after completion, especially when there is usually many units constructed. There will always be a seller.
- Look at many properties – The only way to know you are buying right, is to have inspected and researched many properties.
- Avoid high rise and units in big complexes – Units or Apartments in big complexes have no unique appeal. Their value is often linked to other comparable sales in the building.
- Buy from a motivated Seller – The best deals are often found when the vendor is keen to sell and is highly motivated. This is an opportunity to negotiate favourable terms for a buyer.
- Look for properties that can be bought at a discount to replacement value.
- Do your research – check comparable sales close by to the subject property. Compare apples with apples.
- Do the usual due diligence such as Pest and Building Reports, Strata Reports, Surveys, and consider a registered Valuation.
- Look for opportunities to add value – Is there an opportunity to increase value by renovation, subdivision, extensions or possibly a development approval.
- Buy in areas that people want to live in.
- Have you considered waterfront property – Where the budget allows, consider waterfront properties. Homes and apartments close to the water are usually in demand. They are not building any more waterfront. Supply will be tight and restricted into the future.
- Buy close to amenities – Areas that have good infrastructure will always be in demand, such as areas close to trains, hospitals, major shopping centres like Westfield, good schools and school catchment areas, good employment hubs, low unemployment areas, lifestyle hubs.
- Talk to property managers – see what properties are in demand from tenants. If you are looking for investment, buy properties that you know will rent quickly.
- Engage experienced Lawyers to do conveyancing work.
- Get a loan pre-approval before you start making offers to buy. Tell the Agent you have loan approval and ready to buy.
- Aim to buy properties that have dedicated parking for the property.
- Look for property with valuable land content.
These are just a couple of tips to help you in your next purchase. If you don’t have the experience or the time to look for the right property – then engage a professional such as a Buyers Agent. It is important to remember that sellers have Agents looking after their interest, why shouldn’t a buyer have an Agent looking after their interest.
If you would like help with your next purchase, contact the team at Carver Lawyers – and we will guide you with your next purchase.
At Carver Lawyers, our Buyers Agency Division is led by a Management team holding dual qualifications as both Lawyers and also Buyers Agents – qualities unique in today’s marketplace We provide independent, impartial and unbiased representation.
Contact Dean Carver | Solicitor and Real Estate Advisor | Ph: 0414 322 990
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