Calibre Real Estate’s Principal and Licensed Estate Agent, Justin Hagen, has come on board to do a special guest feature article about the all important topics of buying real estate. Having started Calibre with wife, Alice, over 10 years ago, Justin has been involved in over a quarter of a billion dollars worth of property sales. In this article, Justin reveals his top ten tips for buying real estate. By using Justin’s comprehensive guide, you’ll be nestled into your new home in no time. “Buying real estate is one of the biggest decisions we will make in our lifetime. For those who make good real estate investments, it can really pay off. There are, however, a few key factors that will come into play when buying real estate” says Justin.
Here are Justin’s Top Ten Tips to Buying Real Estate :
1.Know What You Want
Research your desired location. What amenities do you need close by? Do you need to be in walking distance to parks, schools and shops? Get to know the area and look up any current or planned infrastructure projects. Create a checklist for your requirements and know exactly what you need, what you are negotiable on and whether or not you are prepared to make changes or add value to a property.
2.Do Your Research
Understand the local market, equip yourself with the average sale prices, vacancy rates, demographics, median rent etc so you have an idea of true value in your chosen area enabling you to make informed decisions and negotiate effectively.
3.Shop Around for a Great Value Loan
Your home loan may be the biggest debt you ever have so it makes sense to get a great value deal. Compare interest rates, variable interest rates can make a significant difference to your repayment costs.
4.Maximise Your Approval Chances
When financial institutions are assessing you they like to see that you are organised with your finances. Check your credit rating to ensure that there are no nasty surprises, put together a detailed written budget, pay down any credit cards and present your employment history in the best possible light.
5.Get Pre Approved
Be prepared and get pre-approval in principle. Approval in principle means you are given finance approval ‘in principle’ (if you have fulfilled the lending criteria) prior to purchase. This means that you:
- have an indication of how much you are able to borrow
- have a realistic budget when you shop for a property
6. Factor in a Future Rate Rise
Mortgage interest rates are at historical lows but they will rise at some point during the life of a mortgage, so you need to factor in a potential rise when deciding what is affordable for you.
Workout what your upfront costs will be. Will you have to pay lenders mortgage insurance? Are you eligible for a first home buyers grant?
Now you have your budget and have done your research you are ready to start inspecting! Be ready to be patient. Buying a home is important and you want the decision you make to be the right one. If you’re lucky you might find your dream home in the first week – but if you don’t then be prepared to keep looking.
When you’ve found your home, make an offer and be prepared to negotiate but also be prepared to walk away. Remember your budget! There will be a cooling off period on the contract of 5 days and it is advised to obtain a building and pest report, a property inspection can highlight any structural faults as well as the presence of termites.
In order to bid at auction, you’ll require pre-approval and to be registered, you can register at any point throughout the auction. There is no cooling off period nor any conditions, obtain a building and pest report prior to auction day. Bid with confidence and remember your budget!
Did you find this article about buying real estate helpful? Here are some other articles about landlords, investing and purchasing property that other readers have found helpful :
- 6 Things Every Property Investor Should Know When Buying
- The 7 Vital Facts You Need to Know As a Buyer In a Multiple Offer Situation
- How To Be The Winning Bidder At An Auction
- The 5 Game Plan To Building Your Real Estate Portfolio
- How To Buy At Auction. 14 Things You Need To Know.