How to find the right property

7 useful tips when you’re searching for a new home

OK, so you’ve found a property that ticks the important boxes. What next?

1. Visit the property at different times

You’d be surprised at the difference a day makes. Your 10am inspection on a Saturday may mean you miss seeing the huge amount of school traffic during the week.

2. Check for mould, cracks, sagging ceilings, rusty roofs and gutters

You don’t always need an expert. There may be signs of structural problems obvious even to the untrained eye.

3. Get building, strata and pest inspection reports

You might baulk at the cost but they could be worth their weight in gold. While they’ll add to your upfront costs, these reports can reveal issues that may not be obvious when you inspect the property and can potentially save you money down the track.

4. Get legal advice

You don’t want to cut corners and come unstuck down the track because you didn’t read the fine print. Always have an expert solicitor or conveyancer check over the contract and other legal issues like what the council allows. Is the property in a heritage zone if you’re planning to renovate?

5. Check the parking situation

You don’t want to be moving your car at 6am every day to reverse park into the neighbour’s spot. See if there’s off-street parking and proximity to public transport.

6. Explore the local amenities

You may not want to be getting in your car every time you need a litre of milk. Areas with good schools, shops, as well as access to public transport will appeal to owner-occupiers and tenants alike.

7. Decide whether you’re prepared to renovate

You’ll need to be honest with yourself. When you read the phrase ‘Bags of potential’ underneath a picture of lurid lino, cracked walls and fading curtains, do you get a shiver of anticipation or dread? Even if you’re a keen DIY enthusiast, buying and doing up a renovator’s delight can cost a fair amount in the long run—in dollars, time and potentially fractured family relationships. And while you’re doing the place up you’ll need to live in a situation that could be less than ideal, especially if you have a young family. On the upside, being prepared to take on a challenge can open up new suburbs and get you into your suburb of choice at a more affordable rate.

Buying off the plan – the potential upside…

Buying ‘off the plan’ simply means purchasing a property that hasn’t been built yet.

Typically, you’ll only need to pay a deposit upfront before the property is constructed. While you won’t be able to move in or rent it out for some time, it will allow you extra time to save before your purchase is settled.

Another potential advantage is that you can lock in today’s price for the property, even though you may not finalise the settlement for a while, potentially a year or two down the track. By the time construction is finished, the property may be worth more. This could be advantageous in a market with rising property prices.

…and what could go wrong

Buying off the plan is not without risks. The property market can fluctuate, and if prices fall during the construction period, you may find you’ve overpaid relative to prices at the time of the property settlement. This can pose problems when you need to get a loan to purchase the property, as the lender may not provide the full amount you need to borrow. If you can’t make up the difference, you risk losing your deposit and may be unable to purchase the property.

Another risk is if the developer goes bankrupt, you may lose your deposit as you’ll be in line with other creditors trying to get money back. You should research the developer for the project and check their track record to make sure they’re reputable. Construction delays are also a risk, as well as the possibility that the end result isn’t what you anticipated. To manage these and other risks, get professional legal advice to make sure the sales contract includes terms that can protect you, but be mindful that not all risks can be mitigated via the sales contract.