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]]>Don’t rush in and make an offer on the first house you view. There are potential perils that you need to be aware of!
You have saved your hard-earned money and it is finally time to break into the property market. Don’t let excitement cloud your judgement, take your time and get to know the house well before taking the next step. Here are some things you should know before buying a new house:
It isn’t uncommon for your heart to rule over your head when making this emotional purchase. That is a rookie error that could have catastrophic effects, resulting in the purchase of a lemon aka money pit. This can be easily avoided by considering the following:
The surrounding environment and area can have the potential to turn your dream home into a nightmare. Do your research into the neighbourhood and see how the crime rate compares to surrounding areas. You don’t want your family home to be vandalised or broken into, not to mention the higher cost of insurances.
Contact the local council to see the flood maps and get information on past floods in the area. For a quick guide of the risk in Brisbane areas, CLICK HERE. Flooding can cause more costs and damage than you realise.
Building and pest inspections are essential prior to buying a house. The qualified inspectors know exactly what to look for. They will see hidden concerns that you will not know about without an inspection. They will notice cracked beams, water damage and much more.
If the real estate agent offers to arrange the pre-purchase inspections for you, get your own evaluation done as well, the team at Action Property Inspections are reliable and trustworthy. The possibility of the agents report being biased is a risk that should not be taken when making this purchase, as they do not want anything to hinder the potential sale.
Before you step foot into the house take a look at the exterior. There are potential issues that can be seen before the pre-purchase inspection is done that could give you an indication on how well the property has been looked after.
• Fences – do fences look to be in good condition? These are quite expensive to replace and you don’t want to have this additional cost shortly after purchasing a house.
• Roof tiles – can you see any broken or cracked tiles? If you answered yes, this could be a sign that there is water damage in the roof.
• Gutters – are the gutters in good condition? Rust means they will require replacing before too long. Also check to make sure they are attached correctly and not hanging loosely.
• Drainage – does the yard contain drains? If it doesn’t, will it need drainage installed? Check the slope of the block and check for obvious signs of water build up throughout the yard.
A new coat of paint will spruce up the house but look beyond the crisp, clean walls and fancy décor. Open the cupboards in the kitchen and bathrooms so you can check for obvious signs of mould, mildew and water damage.
Take notice of cracks in the walls, if the cracks are large this is cause for concern however fine cracks are often acceptable. Your building inspector will pick up on this if it is a problem. Check the condition of power points and appliances, if they appear to be in poor form, it could mean the electricals need replacing and this is not cheap.
While most issues and damage can be repaired, they could also be the reason you struggle to sell your house down the track or contribute to unforeseen maintenance costs.
By checking the above before signing anything, you could save yourself a lot of heartache and money.
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]]>The post Tips To Find The Right Investment Property appeared first on All Mum Said.
]]>It’s time to put your future first. Don’t retire with nothing to back you up financially, get ahead now!
Investing in your prospective years can make all the difference to how you live when you give up work. By setting yourself up financially in your younger years, you can get a head start on achieving your goals. Find the right investment property and you will be well on your way!
Property investment is not for everyone. Some people prefer to invest their hard earned dollars in shares and stocks. But for those interested in investment property; it is typically considered one of the safer options to invest in.
If this is a route you are considering, you must first be aware of the pros and cons that are associated with investing in property.
There are so many factors to consider but the main ones consist of:
PROS
• Insurance – You can insure your investment against a wide variety of risks; natural disasters, fires, tenant damage/tenants leaving, etc.
• Capital growth – If you have chosen your investment well, you will see a rise in property value over the years to come in addition to regular rental returns.
• Tax benefits – If your property is negatively geared it could provide potential tax benefits. This is not always the case and should not be a deciding factor but is often a benefit to investing in property.
CONS
• Problematic tenants – While this doesn’t happen regularly, you could end up with the tenants from hell. They could damage your property, refuse to leave, not pay rent and cause several other headaches that could take months to resolve.
• No tenants – There is occasional periods where you will have no tenant occupying your property and you will be required to pay the mortgage repayments.
• Ongoing costs – In addition to the initial cost of the property, you will also find that there are ongoing costs associated with property investment. These include: rates, body corporate (if applicable), repairs, insurances, water, maintenance and more.
Similarly to when you are purchasing or renting a house for yourself and your family, the property must consist of certain features to make it an enjoyable and desirable place to live. Investments are no different.
• Location – You have heard it before and you will hear it again. A good location is important for attracting the right tenants. A good location is safe, offers peace of mind and is close to public transport, schools, shops, etc.
• Storage – From ample linen space to bedroom closets; storage is a crucial decision-making factor.
• Parking – Surprising to some, not every property comes with parking. By adding the option of a garage, carport, undercover or off street parking; you will increase tenant interest dramatically.
• Maintenance – It is in your best interest to find a property that requires minimal yard maintenance. Tenants don’t want to pay for upkeep of pools, gardens, etc. so unless you are willing to pay a professional to maintain the grounds, stick with simple!
Buying property can be an emotional experience; however when making the decision, use your head and not your heart!
Research must be done into not just the property but also the area before taking the plunge.
• Infrastructure – What is happening in the area? Are future buildings, businesses or projects planned? This can have both devastating and beneficial effects on the value of your property, so ensure you know what is going on.
• Return potential – The expected return of a property is one of the most important things to consider when purchasing property. Do research and compare the property with those similar in the area on rental sites.
• Investment strategy – Do you plan on negatively gearing the property or receiving a positive cash follow? What is the loan rate? Suburb growth? Do you want a unit, house, etc? By comparing your answers to the above questions on the Homesales.com.au Investment Property Search, you will be shown options around Australia that are expected to produce the results you want.
Don’t just jump in and buy a property. Make sure you take the appropriate steps to ensure it is what is best for you financially and that your purchase will indeed be an investment. Don’t risk buying a bottomless money pit. For more information on property investment, click the link.
Investing in your future doesn’t have to be stressful. By considering the above points and doing your research, you will find the right investment property for you!
Disclaimer: I am not a financial advisor and this article should not be used as such. For financial advice, consult your financial advisor.
This is an S1 POST.
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