We identify the five notable elements which ultimately determine where and what to buy in our property search. These factors are listed in the ascending order in terms of space for compromising.
As stated in our very first blog that every property hunter must have a crystal clear picture on their budget. Budget or buying power is predominantly fixed and promotes little if any room for compromises. It is therefore relatively easy to filter out those suburbs with significantly higher median price than our budget and consequently allows us to focus on a narrower search criteria.
Location has been and will always be the most important subject when comes to buying property. Location encompasses a wide area of consideration. At a broad level, we are particularly interested in the overall feel of the suburb, its proximity to nearby schools, hospitals and other lifestyle amenities, such as, local cafes and shops, its access to transport hub and the commute time to work and CBD. At a more granular level, we contemplate on the aspect of the property, such as, the street the property is located, its surrounding views and orientation.
3. Property Size
The surging house prices suggest less people today could afford to realising their dreams of owning a property with a quarter acre of land. Home buyers are generally more willing to compromise on the actual size of the property or the number of bedrooms rather than the location due to lifestyle opportunity it offers, as supported by the urban sprawling and gentrification process continuing in the inner ring suburbs.
4. Property Type
Subsequently we focus on the type of property we want to buy into. We entertain the idea of detached dwelling or apartment living, contemporary homes or character houses, art deco units or brand new off-the-plan apartments, and freshly renovated or rundown property.
The prospect of the property is one area of ongoing concern for investors where we require to assess its potential for capital growth and rental yield. It is likely prudent to purchase property which is lower than its suburb median price, however provides great opportunity for adding value through renovation or development. This is synonymous with one of the most well known sayings in real estate and that is "buy the worst house on the best street".
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