How to avoid buying a bricks and mortar lemon

August 29, 2017
David Wilson

It's a common perception that you can't go wrong buying property, however the reality is that some people do get it wrong.

CoreLogic’s latest Pain and Gain 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.

As we head into the Spring buying season, here are a few tips to ensure you avoid a bricks and mortar lemon.

Do your homework
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.

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.

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 your Mortgage Choice broker 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.

We can give you a clear idea of your borrowing power. This is vital information to determine your bidding limit or to negotiate effectively if the property is passed in.

Talk to us today
Along with helping you find the loan that’s right for you, we 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.

For more property buying tips, our Step by Step Guide To Property Ownership is a fantastic resource, jam packed with useful information.

Tap into our knowledge and experience us today on 03 9432 6070 or contact us online at the top of this page.


Posted in: Tips

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