5 Must-knows for Property Buyers and Investors

by Greg on May 16, 2012

property buyers

1. Set your goals – work out what you want to achieve from the purchase of the property. Do you want to live in it long term? Is it simply a roof over your head while you build or save for another property? Will you gain rental income from it? Knowing why and how you will use the property will determine the decisions you will have to make.

2. Seek independent financial advice – this should be your very next step. Many people decide to start looking around before analysing their own financial position which can result in frustration, anxiety and despair if you have your heart set on a certain property or certain attributes that may not be achievable.

3. Research – this is critical to any property purchase.  You can monitor property pages of your local and metro papers, subscribe to property and financial newsletters, and start visiting open home events to get an idea of the market. I strongly recommend the engagement of an appropriately qualified, licensed independent property valuer at this stage of the process. Expert advice can see sellers make thousands more and buyers save.

4. Be diligent – you’ve already got the big picture in mind from when you set goals but being successful in property means paying attention to the small details. Seek independent advice for the following when applicable – building and pest inspections, Strata searches, council compliance of extensions, flood and bushfire zone searches, zoning and site restrictions, heritage preservations, easements, encumbrances and covenants.

5. Negotiate – possibly my biggest tip: do not let emotion drive your purchase decision! Have an appropriate negotiation strategy in place including setting your price limit and having appropriate purchasing clauses written into the purchase contract. Don’t be afraid to walk away from negotiations if you feel that you won’t get the best outcome for you. Buyer’s and seller’s remorse is far too common. If you find this step daunting, I would recommend seeking the expertise of a Buyers Advocate (BA). BAs work on your behalf to research, negotiate and secure the property according to your goals and terms. They aren’t intimidated in negotiations and they know what’s fair.

Bonus!Tips for purchasing property with good long term capital growth prospects:

Think big – look for larger size blocks of land with development potential or future development potential.  Larger allotment sizes present with the best long term capital growth opportunity with constant rezoning allowing for smaller densities across some sections of the metropolitan area.

Think close – purchase property within 10-15km radius of the city. Properties located within this distance of the CBD traditionally present superior long term capital growth opportunities.

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Written by Ryan Stewart

Appointed Associate Director of Propell SA/NT at the age of 25 and currently serving as the chairperson of the Young Property Professionals (SA), Adelaide’s Ryan Stewart is making a mark in South Australia’s property industry. Ryan is a Valuation Area Manager at Propell National Valuers and shares his top five tips when it comes to purchasing and investing in property.

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