Whether you are buying a property for investment purposes or to occupy yourself you should always do your homework and consider all your options before you commit. Firstly, you will need to talk to your mortgage broker, accountant or finance consultant to determine your borrowing capacity.
Then you need to decide the type of property you want to buy. The type of property you buy will be determined by either your need to buy a house to live in yourself or if you are buying as an investment you will need to have an investment strategy, which will help you recognize your investment goals and objectives
Research will help you determine the average property prices in the areas you are interested in. The internet is a vast resource of valuable information and will give you a good idea on property values, market treads and the current state of the property market. Attend Auctions, open for inspections, talk to as many real estate agents and property professionals you can, so when it comes time to buy a property, you can make an informed decision. When you have found a property, you are interested in you should request the following document,
- Section 32 (vendor statement)
- Contract of sale of Real Estate
- Building plans
- Building report
- Pest report
- Certificate of occupancy (for new buildings)
Obtain an independent builders report is one of the most important things you can do before you commit to purchasing a property, expert advice may help you avoid making the wrong decision. You should carefully read all these documents and get your Solicitor, Accountant or Estate Agent to read them and give you their expert advice. Receiving independent advice from several sources should help you make an informed decision.
Once you are satisfied that the property you are interested in is reasonable value and in good condition you will be able to make an offer to purchase. Decide on the price, deposit and settlement period you would be willing to accept and submit your offer in writing to the vendor or vendors agent. There may be a negotiation process involved. If the property you are interested in is going to auction then you must have your finance and deposit ready for the auction date and set your limit before bidding commences and if the property surpasses your limit then you should not make any more bids/ When you have reached agreement on terms, or you are the highest bidder at an auction, you can proceed with signing a contract of sale and providing the vendor with the deposit. If you are successful at auction, then you must provide the 10% deposit immediately and there is no 3-day cooling off period. The balance must be paid on or before the settlement date which will be specified in the contract of sale.