The 5 questions most people forget to ask before buying a property
5 questions to ask before buying a property
Real Estate agents are just one of the list of professionals you will deal with when purchasing a property. It’s important that you ask them the right questions so that you clearly understand the process of buying a property in Melbourne. Here are key questions you need to ask.
Is anything being built in the area?
Infrastructure can either be detrimental or beneficial to your purchase. Find out if anything’s being planned in the area and when it should be completed. Contact the local council and see if they have any information they can send you about future plans for the area.
What’s the property really worth?
The vendors asking price doesn’t necessarily mean that’s what the property is worth. Do your own research on what similar properties are selling for in the current market place and speak to other real estate agents in the area and ask their opinion on what the property could be worth – if they’re selling in the area, they should be able to give you a pretty accurate idea on price.
What’s going on in the local market?
The goings on in the local area can impact the property market. Take a tour of the area, check out the local shops, the demographics, crime rates and even employment drivers to determine if the market is on the up or taking a dip. One of the best ways to see what the area is like, is to visit the local supermarket one evening.
Is there competition for property investors?
If the market is saturated with investment properties, your chances of successful rental returns may not be great – unless it’s a high demand area. You can contact the local council and find out the percentage of houses occupied by owners and those by tenants. Search through your favourite real estate website for similar properties in the suburb you’re interested in and pay attention to how many are on the market. Speaking to one of the local agents will also give you an idea of approximately how long it will take to rent a property in the area and the types of tenants your property will attract.
What are you actually buying?
Don’t simply assume that the sale is all-inclusive. Clearly identify what you are purchsing, such as storage facilities, parking spaces and courtyards and make sure this is set out clearly in the Contract of Sale.