|Buying Property Tips#1: Choose the Right Location|
|Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.|
|Buying Property Tips#2: Study the Local Market Dynamics|
|It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.|
Real estate auctions are a great way for you to purchase a house for less than its market value. This means you land a great housing deal and you spend very little money for it. Is it any wonder why real estate auctions are quickly becoming an “it” thing? If you are indeed looking for a house and you want to spend as little money as possible, checking out deals in auction houses Sydney has to offer may be the best thing you can do and yet before you make mistakes that will cost you money, you better learn of some tips that will help you come out the winner.
Research about the property
It doesn't matter how cheaply the houses go for because if you get a bad house, you get a bad house and you are not a winner. You would never buy something as major as a house sight unseen and this is why you need to take it upon yourself to do some research on the property you want to bid for before the auction date arrives. Find out as much as you can about the real estate market in the area so you have a clear idea of the current selling price for homes.
Take a close look at the property
|Buying Property Tips#3: Choose the Right Property|
|Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.|
|Buying Property Tips#4: Do the Math Properly|
|Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.|
|Buying Property Tips#5: Consider Additional Expenses|
|When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.|
If you are given the chance to check out the house, take it. Many auction houses Sydney has to offer give potential bidders the chance to have a look at the homes before the actual auction date and it is very important that you do not miss this as it will give you a better idea if the house is indeed something you want to bid on or not. After all, it is only when you inspect the property that you can see if it needs major repairs or is in fine shape after all. A house that looks good on paper may not look too good anymore once you have taken a good look at it and seen all the glaring flaws it has.
Set your maximum bidding amount
Before you visit the auction house, you need to be set your maximum bid so that you do not get too excited and bid more than you can afford. It is also a good idea to prequalify yourself for a mortgage before you join the auction so you have ready access to cash should you win the bidding for the house of your dreams.
Bring a blank check
It is a great idea to have a blank check in hand before you attend the auction as you will need to write down an amount that is large enough to cover the deposit in the property you have won. Don't worry though as you will not have to pay more than 5% of the total amount you bid so it shouldn't be so taxing on the pocket just yet. You have time to come up with the rest of the cash and since you have prequalified for a mortgage, this shouldn't be an issue.
|Buying Property Tips#6: Inspect the Property|
|To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.|
|Buying Property Tips#7: Pick the Right Financing Option|
|While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.|
|Buying Property Tips#8: Invest through Equity|
|One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.|