Property buyers are being urged to purchased ASAP in 2010 to avoid missing out on purchasing their dream property at a price they can afford.
This year property prices are expected to peak in all states – therefore the sooner you buy the more you save.
Don’t put off that purchase
When looking to purchase a property, you should really look at the property lifecycle to determine the best time to invest. If you wait until the end of 2010, you could face exorbitant costs and limited supply.
The next downturn in the market may not occur for another couple of years.
Choosing your dream home.
Be logical and review the six major groups of investment fundamentals:
1. Location Counts: Does it have schools? Shops? Day care? Car parking? Major shopping area? Cafes? Sporting facilities?
2. Proximity to Transport: How do people get to work in that area? How far is it to bus stations or train stations?
3. Area Demographics: Look at the potential demand of the property by matching the household demographics to the property
4. How Rentable is the Property: Review the logical layout of the home, does it have good sized bedroom? Are there usable living spaces inside and outside, other features such as storage? Even if you are buying for yourself, it is important to consider whether you could rent the property out should you need to do so.
5. Growth Potential: Is there an ability to increase the value of the property through renovation or development? Check the surrounding properties cannot become high density blocks of units.
6. Price Point: Stay within the 2nd and 3rd quartile of prices in the suburb for price and rent. Do not purchase the best house in the street.
Keep in mind the following:
1. Take Emotion out of the purchase decision: Avoid buying with the heart and forgetting the head.
2. Look for Value for money not a bargain: Avoid buying that ‘bargain’ property – there are usually major negatives that will stifle growth. If it sounds too good to be true, it usually is.
3. There is no perfect property: Don’t miss good opportunities because you are waiting for the ‘perfect’ house. Every house will have trade-offs and compromises.
Good Luck!!!