Buying a property is a significant life decision – one of the biggest you will ever make, so how can you make sure everything goes to plan?
We all know buying a home is expensive, but there are many factors you need to consider on top of saving for that hefty house deposit. Are you looking for a property as an investment or a house to reside in for the long haul? Whichever it is, you need to do your due diligence first before submitting a home loan application.
Thorough due diligence should include research into things that are likely to impact liveability and resale value, including area development applications, government infrastructure plans, roads and public transport, and flight paths.
Here at CheckThatProperty, we’ve listed 9 areas to check before signing that property deal:
- Ensure you have your finance is in order
The first step in buying a house is to save up for a 20% deposit of the total purchase price – and there are advantages in making a higher deposit. This means you have lower mortgage repayments. Remember to shop around for the right home loan as it can save you thousands of dollars over the life of the loan. - Inspect the property and neighbourhood
Have you considered doing test drives or going for a walk around the neighbourhood at different times of the day? You can check out if there are shops nearby, access to public transport and recreational parks for children. Traffic and general neighbourhood noise will also vary depending on when you attend the property. - Get a building and pest inspection, and strata report
A licensed building and pest inspector will be responsible for carrying out the property inspection, with a detailed report documenting the condition of the property. This would highlight information about any problems or defects of the building such as a leaking ceiling or the presence of mould. A strata inspection report is a full review of the Owners Corporation records which is helpful when purchasing a strata-titled unit or townhouse. This details meeting minutes and any issues you’ll be dealing with, which could save you from buying a property that’s going to cause ongoing financial and emotional stress in years to come. - Check for planned developments nearby
Although the property you are looking at seems to have great potential, this doesn’t mean it always will. It is important to check zoning plans in the area so you don’t have a ten-storey apartment block overshadowing your property down the track. Ensure your conveyancer or lawyer looks into future infrastructure projects that could impact the property. - Check for environmental hazards
There are many potential adverse risk factors that can have a negative impact on the property you’re looking to purchase and its value. Flood checks are an obvious one, especially in areas built around river or creek systems. Other types of environmental hazards include storm surge impacts, bushfires and noise overlays which will all effect the way you would assess a property. - Check for proposed arterial roads
You should always check for any major road proposals around the property you’re looking to purchase. You want to avoid any major roads being built closeby or behind the backyard fence of your future dream home. - Check for underground piping locations
This is an area that can be overlooked. Checking for underground water, sewer and stormwater pipes that lie underneath a property is useful for buyers looking to dig and install a pool or extend renovations down the track. The existence of these can be a deal breaker, so it’s handy to complete an underground services search. - Check for school catchment zones
If you have children, looking for a property in close distance to decent schools is an important consideration. Often people buy in a certain area because of the local school that they intend to send their children – and schools with enrollment management programs, do not accept those who fall just outside the school catchment zone. - Check the limitations on the land with a Title and Plan Search
Title searches are essential to check and prove official details of a property from ownership, any 3rd party financial interests and to see whether there are any restrictions on the use of the land. A survey plan, registered plan or plan image is a legal document that provides the details of the boundaries of a property, as well as the dimensions and size of a property. Check That Property are the experts in Titles and Plans – click here to start your search!
Following these guidelines may help you uncover any potential “invisible” issues in relation to a property. Being aware of the current condition of the property will help you decide if you are going to push through with the purchase, negotiate the price or refuse the proposal and look for another property in market.
The information in this publication is intended for general and/ or product information purposes only. It does not serve as specific advice to any particular person or organisation and should not be relied upon as such. Any information contained is general in nature and does not take into account any person’s or organisation’s situation, circumstances or individual needs. Before acting on anything held within you should consider professional advice and the information’s appropriateness to you, having regard to your objectives and needs.