Basic Guidelines in Buying a Property
It took us quite awhile before we decided to buy our own property. You can read on my previous post, on how we moved on from renting to buying our own property.
For some people, it is an emotional exercise to buy your own property specially if it is your first time to do so. Here are some guidelines I used to balance my emotions with logic in buying our property.
1) Set a budget
It is easier to buy a property if you have a set budget. This will make it easier for you to decide where you can afford to buy. Moreover, in knowing your upper limits you won’t be pressured by anyone or anything to increase your offer price to unreasonable levels!
2) Write your priorities
In choosing a property, write your priorities. You could start with the factors affecting your choice of location. It could be a convenient location, a good potential investment or a family friendly atmosphere.
Next, you can sort out the best structure that would suit your needs. Do you need a single level or two-storey building? Do you prefer a new dwelling or you don’t mind an older building?
Then, you can also write down the least of your priorities. These are the things, that you consider as a bonus if you can get it but won’t necessarily affect your buying decisions. For instance, a big backyard would be nice but not necessary if I live near a park. A double lock-up garage would be great but I could live with a single garage.
Once, you have set your priorities you will realize that it is a lot easier to choose your ideal property.
3) Have a criteria
This is when you organize everything, from your budget range to the things you wrote down in your set of priorities.
For instance, in my choice of buying a property this is my criteria:
3.1) My budget range will be from $400,000 to $500,000
3.2) My priority is a good location with a potential for an ideal investment.
To be classified as a good investment:
a) It should have a good potential for capital growth.
b) A good rental yield.
c) In a growth area; the population will increase significantly in the next few years.
d) Developing area; there are several infrastructure developments being built to support the growing population.
3.3) The building should be of a sound structure with minimal repairs required.
3.4) The location should be near a school, public transport, medical center and good shopping areas.
3.5) On a quiet street, with good neighbours and a family friendly atmosphere.
3.6) A good size backyard will be a bonus.
3.7) A fourth bedroom would be ideal but not necessary.
3.8) Proximity to a park will be nice but not essential.
4) Once you have a criteria, then you can start narrowing down the suburbs to the one that best suits you.
5) Research on the market price of the properties within the area, specially the ones that sold for the past twelve months. Make sure your finances are ready, so when a well-priced property goes into the market you can easily make an offer and negotiate to buy it.
6) In negotiating for a property to buy, you will realize that it will be a true test of your emotions. However, since you have a set criteria and have carefully chosen your property in the first place, then you know you’ve been logical with your choice. During the actual negotiations, set your lower and upper price limits and stay firm with your price.
7) Secure the property and make sure you have a good lawyer to check on the details of the contract and do the conveyancing for you!
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1 opinion for Basic Guidelines in Buying a Property
propertycrossroads.com - Established Area or New Development?
Dec 6, 2006 at 9:10 pm
[…] From my previous post, I did mention about us moving on from renting to buying a property. But, it was not as easy as just deciding to buy a property. We had other plans, other than just looking for a house to live in. We had a set criteria. It was our basis in narrowing down our choices. […]
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