Research should be one of the first few things you should do before you buy a property. There are many reasons why this makes sense. For one, it provides you with proof that you are indeed making the right decision by acquiring the property. Intuition or gut feel may be a great starting point, but you should always back it up with tangible information. Another reason is that your research could help get potential problems out of the way.
But what exactly should you look into when you're doing your research? Let's get started with the following:
- The location. When choosing a property, don't merely look at it individually but also the area where it is located. The location alone would help you gauge things such as the safety of the area, the type of market it caters to, and the average value of properties there.
- The value of the property. Just because the value of the property is plastered on the ad doesn't mean that that is the actual value. We recommend that you hire a valuer to determine the true worth of the property. Chances are that there will be a significant difference between the advertised and the actual value, so use that as a negotiation tool to get a great deal.
- The rent value. You want to be in a Goldilocks situation when it comes to rent, that is, just enough--not too high or too low. But how much is enough? Check out property portals and specify your area and type of property to find out what the going rates are there.
- The amount of work it needs. Most properties do not come in perfect condition. Chances are that there are things you need to fix up. Thus, you have to find out how much fixing you need to do. Stay away from properties that need serious renovation as it would only eat up your resources. Aside from that, renovating it would waste the time you could have used to start renting it out.
The goal of your research should always be to assure yourself that you're making the right choice in your investment. That said, try to find out as much as you can on the property itself and the area where it is situated.
Speaking of making the right choice, contact our Rate Detectives if you wish to make the right choice on your home loans today. It doesn't matter if you're getting a loan for the first time or are wishing to pay it off sooner--they will provide you with all the help you need to find a deal that suits you. They will even show you rate comparisons of Australia's top lenders, so you can truly make a great choice.