Avoid getting ripped off when you buy property

September 05, 2017
Ben Herden

Making money on property is a no-brainer, right? Well, not always. We show you how to avoid a bricks and mortar lemon.

“You can’t go wrong with property” is a commonly touted view. And the vast majority of homes can be an outstanding long term investment.

However, CoreLogic’s latest Pain and Gain (1) report found 9.6% of homes resold in the March quarter of 2017 sold for less than their purchase price. It meant the owners were left wearing a loss, and it’s important to ensure this doesn’t happen to you.

Knowledge is king

A key first step is to do some homework. Have a good idea of property values in the area you’re buying, and aim to buy with your head, not your heart. Look for a home that ticks all the boxes in terms of meeting your needs rather than falling in love with just one or two features.  We can provide you with free property reports to help you with this.  

Don’t skip the pre-purchase inspection

Once you’ve found a place that seems right, arrange a pre-purchase pest and building inspection. Many buyers don’t, and it could see you facing unexpected costs for repairs, pest infestations – or worse, struggling to sell your home in the future because of illegal building work.  It's a small price to pay for one of the largest investment you'll ever make.  

Talk the talk

Real estate agents can pepper their talk with jargon like ‘caveat’, ‘DA’ or ‘private treaty’. Take the confusion out of the conversation by checking out a few online glossaries (some real estate agents feature these on their websites), or talk to Mortgage Choice in Gymea about any terms you’re unsure of.

Buying at auction – know your limit

An informed approach is especially critical if you’re buying at auction. It’s very easy to get caught up in the pressure-cooker environment of an auction and end up paying more than you planned – or can afford.

Mortgage Choice in Gymea can give you a clear idea of your borrowing power and will arrange a pre-approval for you. This is vital information to determine your bidding limit or to negotiate effectively if the property is passed in.

Talk to Mortgage Choice in Gymea today

Along with helping you find the loan that’s right for you, the Gymea team can answer all your property questions, giving you the information you need to find the property that’s a ripper –rather than a rip-off.  We will also arrange an obligation free meeting with a financial planner for you too!

Call us on 02 9525 4544 or contact us here. 

You might also be interested in:

(1) https://www.corelogic.com.au/news/best-worst-for-property-resales-over-march-2017-quarter-announced#.WYQBFTYUnIU
Posted in: Property market

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