How Do I... Find the Right Home to Buy?
Whether your plan is to invest in a new property and rent it out, or make it your forever home, here's what to look for
In this practical series, we ask experts to answer your burning home and design questions. Here, buyer’s agent Greville Pabst at PropertyDuo reveals exactly what to look for – and what you can disregard – when buying a property.
3. Land size: More land equals more value. Australian block sizes are decreasing to allow for higher-density living. Sufficient space for a garden is now a sought-after feature of any home.
4. Potential to update and add value: Ask yourself, is there scope to make improvements to the property that will enhance its liveability or boost its appeal to buyers if you decide to sell?
5. Price: When buying a new home, you need to have a clear idea of your budget from the outset. When you find a suitable property, research the recent prices in the area so that your maximum price is well-informed and realistic.
4. Potential to update and add value: Ask yourself, is there scope to make improvements to the property that will enhance its liveability or boost its appeal to buyers if you decide to sell?
5. Price: When buying a new home, you need to have a clear idea of your budget from the outset. When you find a suitable property, research the recent prices in the area so that your maximum price is well-informed and realistic.
- Have a clear idea about your plans for the property
If you intend to live in the property, you can afford to be more personal in your preferences and take on a home that might require some updates over time.
If the intention is to sell, focus on catering to the demographics of the area rather than to personal taste.
What to look for in an investment property
- Verifiable evidence: Ensure that your decision is based on unbiased data and independent professional advice, not personal preferences. If well managed, an investment property can significantly improve your financial position.
- Past performance: Consider the recent capital growth of the property, because it is a good indicator of its future performance and suggests whether the property is an appropriate investment.
- Located in a stable-growth area: Don’t focus solely on property hot spots as they tend to be unpredictable. Instead, opt for an area that is gradually increasing in value.
- Well positioned within the area: Buying in a blue-chip suburb does not necessarily equate to buying a blue-chip asset. Make sure the property is removed from main roads, noisy public transport and over-hanging power lines.
What to look for in a fixer-upper
- Timeless appeal: In Melbourne and Sydney, Victorian- and Edwardian-style homes and some from the 1930s and 1940s generally retain their value throughout unpredictable housing fads.
- An acceptable external shell: Building new exterior walls is expensive and you don’t want to spend all your budget on the foundational elements of the building.
- Room for simple improvements: Sometimes it is the small changes, such as new carpet, freshly painted walls and modern kitchen features that add the most value to a house.
- A functional floor plan: Often the factors that hold back the potential of a doer-upper are restrictive space allocations that don’t allow room for straightforward development. Be aware of this when assessing a property that you plan to do up.
What to look for in a property you’ll live in
- Sufficient land for future plans: Often as families grow, the need for outdoor space increases. Parents often want garden space for children and pets to play in. If there is little outdoor space available, make sure the house is situated near a park.
- Extra room: Look for bedrooms that are large enough for two beds or an office that can be converted into another bedroom if needed.
- Multiple bathrooms and a good hot water service: This is essential if you want to avoid family arguments about who showers first.
- Proximity to schools and childcare: This will save you money and time spent commuting. In addition, homes in school districts tend to produce significant capital growth and maintain their value during periods of market volatility.
Be wary of over-rated extras
Luxury features such as swimming pools may be appropriate in expensive property areas, but in mid-level suburbs, people tend not to expect them and are often not willing to pay more for them.
Luxury features such as swimming pools may be appropriate in expensive property areas, but in mid-level suburbs, people tend not to expect them and are often not willing to pay more for them.
…And finally
Make sure you do your research. The most common mistake people make is not doing their homework before they purchase a new home, which can lead to a costly mistake. Also, don’t allow your emotions to rule you in your property decisions: consider the area, market trends and property history to ensure that this is the right home for you.
Make sure you do your research. The most common mistake people make is not doing their homework before they purchase a new home, which can lead to a costly mistake. Also, don’t allow your emotions to rule you in your property decisions: consider the area, market trends and property history to ensure that this is the right home for you.
Tell us
What do you look for in a new home? Tell us in the Comments below, like this story, and join the conversation.
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Thinking about buying this year? Have a chat to a real-estate agent near you
What do you look for in a new home? Tell us in the Comments below, like this story, and join the conversation.
More
Thinking about buying this year? Have a chat to a real-estate agent near you
1. Location: Assess the suburb, street and block the property is located on. The location of your new home is one thing that can never be changed. Ask yourself if the property is close to local restaurants, schools and public transport. These factors will define your quality of life if you plan to reside in the house… and the amount of return you are likely to earn if you sell.
2. Floor plan and size of the home: The floor plan is a key feature in any home; it defines how people move between rooms and the amount of natural light the house receives. Kitchens and living rooms should ideally face north so they capture the most natural light. An extra bedroom or bathroom and an open, modern kitchen can significantly enhance the appeal and liveability of a home.