Buying Real Estate
Buying real estate is about the biggest financial commitment and decision you will ever have to make. However, it is also an exciting turning point, one that will almost certainly make the most impact on your lifestyle.
For many it will be something never done before. Selecting the right property, in the right area, organising finance and negotiating the sale – it can be a little daunting. Yet it is not as complicated as you may think and there are many ways your First National Real Estate agent can help. What kind of home are you looking for?
The first step is to decide what kind of home will suit your tastes and lifestyle. Establish family priorities – don’t forget to include the kids in the discussion! Anticipate potential changes in lifestyle: size of family, job changes etc. Consider extracurricular activities and school when choosing your new home. What can you afford?
Establish the price range you can afford – even before you start looking at homes, First National Real Estate can help by assisting you to determine both your priorities and potential price range. Start hunting!
Prepare a short list of preferred suburbs that suit your lifestyle, bearing in mind affordability and accommodation requirements. Research sales in those preferred suburbs. Inspect every property in your preferred suburb so you have a feel for the prices. Attend all open homes in the area. You’ve found it…
There are two ways of buying a home – auction or private sale. Offers to purchase may be made in two ways – unconditional (commitment to buy the house as listed at the price agreed) and conditional (you will buy if certain conditions are met, e.g.: a soil test of the property). At auction, make sure you keep your financial limit in mind. Remember, once you have made a bid, it cannot be withdrawn. What happens on settlement day?
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- The lender authorises payment of the loan, and payment is made to the vendor;
- You (or your solicitor) authorise the vendor to collect the deposit money that has been held by the real estate agent, in trust;
- You receive a signed transfer of title deed and your solicitor or bank will arrange for the Registrar
- General to register the transfer and the loan;
- You pay the stamp duty on the home loan;
- You are given the keys and the house is yours!
for information on home loans, what you should do at auction, essential checklists and worksheets and understanding technical and legal terms. Why Invest in Property? BENEFITS OF PROPERTY INVESTMENT CAN INCLUDE:
THINGS TO CONSIDER WHEN CHOOSING AN INVESTMENT PROPERTY:
- Property represents a very secure and sound, long term form of wealth creation.
- Property is a solid long term investment.
- Property investment provides capital growth.
- Property market information is easily accessible and widely available.
- Property is tangible - you can actually see and drive past your investment.
- A well chosen property may provide a good steady return on investment and, over time, increase both in rental potential and property value.
The two most important criteria when choosing an investment property are location and quality.
WHAT COSTS WILL I HAVE TO MEET?
- A property located close to transport, schools, places of work, shops and recreational facilities will be in greater demand and usually command a higher rental.
- By maintaining your asset in good repair and ensuring it is well presented, you will maximise rent, reduce vacancy and attract a high standard of tenant. Vacant properties cost you money and are a security risk.
As you would expect, there are various costs associated with property investment in addition to the costs of maintenance. When you acquire a property, there are government charges for example registration fees on the transfer of title and mortgage. There are also solicitors' fees. In addition, there are real estate agents' fees for managing your property and selling it if you decide to do so in due course. Your real estate agent can assist you in the calculation of these costs.
Making sure you have the right real estate company managing your investment is vitally important. First National Real Estate can save you time and take the hard work out of owning an investment property.