Many buyers approach the home buying process, probably the biggest financial transaction in their lives, unprepared. They then deal with real estate agents, bankers, mortgage brokers, lawyers and others who are accustomed to property deals and in may times end up confused and frustrated.
First, create a strategy that’s right for YOU!
Ask yourself these questions:
- What am I trying to achieve? For some it is being in the right school zones, for others it’s about living stumbling distance for the local bar.
- How long will I live in this house? Long term solution or just a step onto the property ladder.
- Is my lifestyle going to change? There is no joy in buying a house and committing to a mortgage if you can’t enjoy overseas holidays and going out to a restaurant like you were used to.
- Do I still want to travel or work overseas? Than buy a house that would be easy to rent out and maintain.
- What type of ownership would suit my requirements, straight ownership, Ltd company or a trust? Speak to lawyer or accountant on how to best protect your assets.
- Do I want to buy an investment in 2,3,5 years? Than buy a property that would allow you to create or generate enough equity for future leverage.
Second, create your own team of experts, people who can advise you on the many aspects of home buying.
These experts may include a solicitor or legal executive, a building inspector, a finance / banking adviser, a buyer’s advocate an accountant and a town planner.
Talk to them about what you should look out for when buying, how to structure your purchase, how to structure your finance and what you can or can’t do with your future house or land.
Third, become your own expert. Choose a suburb, an area or a building style and immerse yourself into it.
Study its the history, recent sales, common titles, average prices, better streets etc.
Connect with the local agents – they are a source of valuable information.
Drive and walk the streets and talk to the residents.
They will be flattered and proud you have chosen to buy in their neighborhood and tell you everything you’d want to know including properties that may be coming on the market soon.
Once you know the area and a property opportunity presents itself, you will be well prepared to snap it up quickly for the right price.
Part 2 (understanding Auction, tenders and price by negotiation) and part 3 (working with real estate agents ) coming soon.