Research Crucial Before Buying a Home
Due Diligence forms the core of a home purchase; and this is irrespective of the fact whether you are a first home buyer or a seasoned investor. There are a few things you aren’t generally told about but from your side, your research should be immaculate in these regards.
Five things a home buyer must have in mind
- Find out whether the property you are looking to buy has an easement (for instance an egress easement) or an encroachment on it.
- If you intend to buy a new home from the proceeds of the sale of your old one, don’t go for it if your old one fetches you a great rental. I know the debate “rental yield versus capital growth” lingers but it is not advisable to give up a positively geared property for nurturing ambitions of capital growth. Yes, you can of course go for it if you have diversified your portfolio (have negatively as well as positively geared properties) and it is part of your investment plan.
- Do not think of a purchase without seeking the services of a seasoned buyer’s agent. Such a professional can not only negotiate the best for you once the property is decided but also ensures that the property you buy passes the test of ‘location’, ‘capital growth’ or ‘rental yield’, ‘town planning initiatives’, ‘easements’ and a ‘good neighbourhood’, among other things.
- Make sure that you rope in a conveyancer and go through a pre-settlement inspection before signing the title deed. Also, look deep into the deed and minutely scrutinise all the endorsements and exclusions of the contract. I remember a client buying a home only to learn later about a number of council denials…well, he paid a handsome amount fetching all the approvals on a later day.
- Do not overcapitalise on renovations and while we are on it, let me share a couple of things. 1) Always renovate keeping the neighbourhood in mind and 2) spend more on structural renovations than the cosmetic ones. For instance, an extra bedroom always ranks over a swimming pool.
If you are looking for a seasoned buyer’s agent who can look neutrally and unemotionally at your purchase and use all his/her expertise to get you the best home and price, you can get in touch with me. Will be glad to assist.