5 Important factors when buying a property

by Nov 25, 2019Articles, Management, Sustainable Development Goal

Auctions have a long history,in fact the first auction was recorded to have taken place as far back as 500 BC.  Today as much as 85% of residential properties in Australia are sold on auction and the platform is firmly recognized as a mainstream method of acquiring and selling property.

According to Ari Ben, CEO of AuctionInc “we are seeing an uptick in the demand for residential property in the R1m-R3m price bracket and are seeing the number of registered bidders at our auctions steadily increasing”. 

There are many reasons why property auctions are becoming so popular. One such reason is due to the fact that purchasing a property by way of auction is a much simpler process than the traditional method of sale, purchasers know that once the highest bid is accepted there is no further back and negotiation required. Perhaps a more compelling reason why auctions are currently so popular is because purchasers know that they are dealing with motivated sellers who are serious about selling and are not simply testing the market.

When it comes to buying property, we are all familiar with the adage “location, location, location” but what are the other important factors to consider before you buy?

What’s your budget?

First and foremost, you need to consider your total budget available for the purchase. Remember to factor in all the hidden costs associated with transaction, these include transfer costs, transfer duties, bond costs, cost of movers and any additional work that needs to be done on the property itself. Once you have a firm number in mind the hunt for your perfect property can begin.

 Where to find the best value?

There are a myriad of property sales platforms available to help you find your property including online sales platforms, local estate agents and auction – a platform that is rapidly gaining in popularity. More and more buyers are attending auctions because they know they can acquire properties at fair value and that they are dealing with committed sellers (not people just testing the market).

Does it serve your current and future needs?

Before committing to any specific property, look at it from both a functional and an investment point of view. From a functional point of view, it’s important to consider whether the property serves both your current and future needs. From an investment point of view, you need to consider how the property stands to perform as an investment over time. Generally speaking, property prices at a suburb level are either on the rise or the decline. Make sure that you only buy a property in an area that’s on the rise to achieve capital appreciation over time.

Inspect it thoroughly

When you have found your ideal property in the right area, make sure to inspect it thoroughly! Walk through the property with an independent contractor who can point out things that may have gone unnoticed to you.

Finally, ask yourself does this property make you feel at home?

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