Whether you’re a first time home buyer or someone who is looking to invest in another property to secure your financial future, finding a good deal is always top on everyone’s list. Being able to discern at first glance if a home is worth its investment takes a keen eye and isn’t something that should be taken lightly. You are, after all, investing your hard-earned money and the last thing you want is to be riddled with regret in the future. Thankfully, there are a number of key factors that property investors can hone into in order to discern if a home is worth buying. Today, we share our top 6 tips on how to tell if a home is a good investment, so sit back, relax and read on to find out more.
1. Does The Property Assist or Hinder Your Financial Goals?
Whether you are looking to invest in a property for the sake of additional passive income or simply looking to move into your first home, evaluating your financial goals is step 1 (albeit a less than exciting process) in figuring out if your chosen property is worth investing in. If you are an investor, how much passive income are you looking to acquire each year? Is your property of choice going to be attractive to tenants and is it capable of offering you the returns you are looking for? Similarly, for first home buyers, figuring out a suitable mortgage rate is essential in ensuring that your financial goals are met for years to come. Once you have figured this out, you will be better equipped to decide on whether any particular property is able to help you achieve said financial goals.
2. Get A Property Conveyancer’s Opinion
One unfortunate fact of life is that the property industry tends to attract people that are looking to make a quick buck in any way possible, as quickly as possible. This means that you may very well encounter individuals who are trying to sell you a less than stellar home with underlying issues that you may be oblivious to. This is why we always recommend enlisting the help of an experienced property conveyancer.
Utilising conveyancing services will help you obtain the information that you need in order to make an informed purchase. Some of the matters your conveyancer will be able to look into include the history and background of your chosen property, as well as nearby surroundings to determine whether or not the property is breaching any local or federal laws. If you have received the green light from your conveyancer, you’ll be one step closer to confidently clinching a deal on your next home.
3. Signs Of Development
One of the most important factors that will help determine if a home is worth buying is signs of development. We recommend looking for a home that is situated in an area that is expecting tremendous growth in years to come and not the other way round. Some excellent signs of development include access to major roadways, public transport, shopping centres, schools and city development projects such as parks and community centres.
Expert Tip: A fantastic sign of economic development is an area that has an Amazon distribution centre moving in. With online shopping and retail trends constantly on the rise, last-mile infrastructure is becoming increasingly important.
4. Determining All Costs Upfront
Before you bite the bullet and make your purchase, it is vital that you calculate all projected expenses and running costs. In addition to the mortgage, you will need to factor in other costs such as unexpected repairs, maintenance, insurance, utilities, vacancies and professional fees. Running these numbers beforehand will help you gain a more accurate idea of the type of returns that you’ll be generating and will help avoid nasty surprises or unexpected hidden costs down the road.
5. Compare The Market
A quick online search should always be the first line of action for most homebuyers, and one of the best things you can do is to do some research into the other homes for sale in your chosen suburb or area. Other online listings in the area will be able to give you a good idea of what comparable properties in your city or suburb are selling for. If your home of choice is being sold at a highly-discounted rate (or at an overly inflated price), alarm bells should start ringing and you’ll definitely want to figure out why this is the case before making your purchase. When looking at comps online, keep in mind that you’ll have to compare your chosen property to properties of similar condition, size, accessibility and location.
6. Does It Feel Like Home?
Lastly, and on the least technical note – does your chosen property feel like home? The perfect home is subjective. What may be a dream home for one person could very well be a living nightmare for someone else. At the end of the day, being able to envision a future and a life for yourself in a home is just as important as any other nitty-gritty financial detail. Is your home of choice one that you can see your children running around in years to come? Can you already envisage the parties, gatherings and barbecues that you’ll be able to enjoy with loved ones and friends? When it comes to figuring out if a home is worth buying, the heart and the head have equal say in the matter!
When it comes to investing in your next home, your best option is to be fully informed in order to make the most informed purchase possible. We hope that this article has given you some valuable insight into some of the factors to look into when choosing your dream home. All the best!