Do bear in mind the climate factor when choosing the place as some areas are very hot during May, June and July. Some places rain a lot. Australia had to go through from a ‘correction’ around four years ago, but improved to post annual house price rises at a modest rate for the past three years. Property price rises are decreasing but there is less buyer interest in the market, so for those who are thinking of buying, are in luck. Statistics suggest that the rate of economic tightening in Australia is less than in many other industrialized countries, so the recession may be less dangerous there than in other places.
Valuing a real estate is tricky
The value of a company is clear when buying share, real estate is harder to price, this gives you the chance to buy an asset below its real market price if you are persevering and well-informed. You need to do research and you will know which one to buy and which one not to when you see it. Never think of buying real estate in a place that you do not know, mainly when you are approached by real estate marketing companies as they result in the price of the property being increased.
Understanding the mortgage system
There are a number of different types of mortgages available. Loans can help get you a great property. Banks only take 80% of the rental income into account when working out whether you can afford an investment loan because costs like letting fees and vacancy rates are there. There are many choices when it comes to financing your property so do research and take advice as it will be important for your comfort and living. People spend too much time researching mortgages looking forward to save a few dollars a month whereas they could spend that time on finding their local real estate market where much bigger gains can be had. To find out more about mortgage, check out YourMortgage.com.au.
Finding the perfect property
Pick a location where you think will develop in the next 10 years. The place at present might be cheap because it is not developed but in the next 10 to 20 years the price might double. Choose a place where transport is easily available as buying a car is expensive. Public transport is of a very high standard with trams, buses and trains. Taxis are there for a comparatively low cost.
One good thing about a new-build property offers is that you do not need government permission to buy it. Developers have a habit to gain FIRB (Foreign Investment Review Board) approval so that they are able to sell a maximum of 50 per cent of the structure to newcomers, which make purpose-built developments very standard.
Hiring a buyer advocate or real estate agent may help lower the cost. The minute they walk through the door they can tell the price because they have a lot of experience. They know whether a specific house is priced more than the usual or underpriced. They have all the data about every property for sale. They will help you deal with the paperwork.
Availability of public utilities is very important for daily life that is water, gas, sewer, electricity, phone etc. Nobody wants a property where the electricity is not stable or cannot get access to clean water. You need to understand there are many options so do not worry. Know your budget and ask your agent to find homes within that budget. The properties you are buying make sure you know its history. Ordering a “Records Search & Risk Assessment” (RSRA) from a local environmental consultant will help. These usually cost $400 to $600 and they will do a high level study and investigation of the environmental risk of contamination on any property.
Best advise: Hire an Expert
We have learned the tough way that there are some very necessary things that should be looked at before signing the papers to buy a new property. You will need someone expert do a checkup and look over the place to make sure you are making the right choice.