No one wants to let their hard earned dollars go down the drain by making a decision they will regret. Buying a house is likely to be one of the biggest purchases you make in life, so sitting down and thinking about what your ideal home would be is a crucial step.
Here are a couple of things to consider if you’re in the market for a new home:
Home is Where the Heart is
Think about where you want to live. What do you prioritise? Do you want a home close to where you work? Or to live somewhere that doesn’t sleep? Would you consider relocating to another city or state altogether?
If you’ve been living in the inner city, then choosing a new house or apartment in the same area may be the avenue for you. Getting around is easy with public transport on hand which may save you from needing a car (a place in the city with a parking space could end up costing you more). This can be a great choice for those living the single life, couples and retirees. There are families in the city too (of course), but if you’re priority is less hustle and bustle, more space and a slower pace, then perhaps the city isn’t for you.
Getting a house in an urban area still allows you to enjoy the best of the city life, and can be great for those who work in the city but want a more affordable option for a home in a good area.
If you’re with family or thinking of starting one soon, the suburban area is a good choice. Parks for kids or a place to walk your pet are easy to find. Also, there are plenty of schools nearby. Getting to big shopping centers and other attractions is easy and it’s far quieter than an urban area. Property prices here are also cheaper, meaning you can find more spacious homes within your budget.
Want some real peace and quiet? Outer rural areas could be for you. If you are thinking about a place for raising horses or other farm animals, there’s plenty of space for you here. Properties in rural areas are typically larger than most, so there may be more upkeep on the property, but for many living the country life, the advantages far outweigh the work.
Try Your Luck at an Auction
There are a few things you need to consider if buying a property through auction. One is the condition of the house.
Getting a building and pest inspection before the auction is crucial. Remember that you are not the only one bidding for the home so there is a chance you may not get back what you spend on it. And anyone investing a lot of money in a property would want to be sure that what they are buying is in good condition (and won’t cost them thousands after). Because of this issue, it has been suggested to make inspection reports on these homes available for free which could save people looking at the same property some money.
Real estate agents will want to draw in more bidders which would affect the price of the property. So, don’t put all your eggs in one basket. There can be some difficulty getting quotes for some properties. In Queensland, real estate agents are not allowed to give one, which complicates things for prospective buyers. However, buyers can do their own research by checking similar properties in the area with available quotations online.
Old or New?
Next you need to decide whether you want an older home or something brand new. Do you want to do some renovating or have it all ready when you move in?
What normally happens when you get an older home is you get a property with a high market value. That said, extending it or remodeling means higher equity, which is a bonus if you decide to sell it in the future. Some old homes are hidden gems waiting to be uncovered. Getting to know the exact value of the house is always a good thing.
Getting a new house has its obvious charms. It’s all new! And you can just move in without thinking of repairs. You also become eligible to claim depreciation for it. Not only that, these new homes usually pop up in hip locations coveted by many, so you can get a piece of the action.
Most new properties developed in Australia are required to give statutory home warranty insurance. That is very important because it is the buyer’s protection when they encounter major building defects in the future. It’s like an assurance that the developers are not running away from any obligation.
No matter if you’re buying new or old, a property inspection is still a must. Older homes will get the building and pest inspection report (see what this covers), while brand new homes will get a handover inspection. Both are extremely important and if you choose not to get your potential home inspected, you could be facing some serious costs in the future.
The House of Your Dreams
So you’ve decided on the location, the size, checked out the auction, or chose to go with a brand new house. You have seen the building and pest inspection report. Do you still have the same desire for the house as when you first saw it? If you’re thinking twice, look at the facts.
Think about the cost of any repairs you might need. If you can afford it and it doesn’t seem unreasonable, then there may be no reason for you to back out. If the cost of repairs is considerable, you may be able to use that to negotiate the asking price. Think things through and keep in mind the cooling off period. If you change your mind within that period, you could still get your deposit back and avoid causing more trouble for yourself and the seller.