Property

Buying a new home is never straightforward, but following these expert tips will help you buy the best property in the best location at the best price.

Don’t believe the hype

Recognise that a depressed market presents opportunities but don’t rush into buying.

The principal of buyers’ agency Rose & Jones, Byron Rose, says “Just because the market is soft, don’t be caught up in the mindset that you should just go out and buy anything,” he says.

To tell the difference between hype and reality, Sydney Property Finders’ principal Dennis Kalofonos suggests buyers invest time in educating themselves on what is happening in the economy and understanding the factors affecting the market.

Live auctions can push panic buttons and REA Group’s Whyte says this, in particular, is the time when buyers need to keep their cool. Understand and review your purchase criteria to ensure a property suits your investment strategy and long-term goals.

Boring but oh so true

The old maxim still holds. The Housing Affordability Sentiment Index by realestate.com.au found half of all Australians were unwilling to live further than 10 kilometres from their dream location. Being situated between two and 15 kilometres from a city is considered a major driver of capital growth.

So it’s important to consider proximity to main urban centres and walking distance to transport, community and lifestyle options, amenities and schools. Henry Ruiz, chief product officer at realestate.com.au, says buyers should also look at the areas surrounding their target suburb, particularly if cost is a concern.

“If your target is out of budget, consider more affordable neighbouring suburbs,” he says. “These may be the next areas to boom.”

It can be wise to talk to neighbours, business owners and other locals to get a more intimate understanding of a location before buying into it. In addition, spend time in the area, in the daytime and at night, just so you can get a feel for whether it suits what you are after.

Look to the future

Think five to 10 years ahead, are you likely to have a family and need to upsize? Will you need to sell? Or will you be downsizing? Rose & Jones says a purchase should take into account a person’s “financial, career, marital and lifestyle needs”.

Also consider whether there is scope to create more value through adding extensions or a granny flat and think about whether the place will need any major repairs in years ahead.

Realestate.com.au states that the key priorities for house hunters include privacy, a bedroom for each family member and a garden. All of these things rated higher than proximity to schools and shops.

It can also be beneficial to think like a seller. For instance, if you are considering an investment property, understand what types of buyers you may draw. Is your asset a family home or is it more suited to executive singles or couples?

Do your research

Sydney Property Finders’ Kalofonos says this includes much more than a simple internet search and that there are “no short cuts”. To do this, study reports in the local media and online through websites such as realestate.com.au or domain.com.au (owned by Smart Investor publisher Fairfax Media).

It is also important to talk to local real-estate agents and experts.

For suburbs, look at data such as median prices, population demographics and community facilities.

Also visit the local council or its website to find out if any planned development projects may affect value. Check area reports of termites or flooding issues.

A visit to the local police station may also provide a bit of an insight into the area and whether it is a good one to be bringing up children in or walking home late at night.

Time on the market

Determine how long the real estate has been advertised for sale. “If a property has been marketed for five or six weeks and has not sold, you really have to question the quality of that asset and the price it is marketed at,” says property consultant Peter Rogozik from Rose & Jones.

Realestate.com.au’s Ruiz agrees, adding duration gives a good indication of what the market is doing and the price people should be prepared to pay.

One way to find this information is to carry out a database search through websites such as rpdata.net.au which offers basic data on the sale of real-estate. A more extensive search can be done through a licensed real-estate or buyers’ agent.