There’s a lot more to buying property than simply having the deposit ready. Your attention must be given to many other important considerations, none of which involve limiting your smashed avocado intake (despite what self-proclaimed wealth-building experts might tell you). You’re on the right track by doing your own research and dodging the negativity that confuses many hopeful property investors. Here are four practical tips to keep in mind when you’re property-shopping in Australia.
1. Consider Commercial Real Estate
Before you let another seasoned property investor dizzy you with stories about the risks of owning commercial real estate, ask them whether or not they have ever owned any non-residential properties. You’ll find the naysayers often don’t have the experience to back up their negativity. In reality, the return potential is significantly higher for commercial properties in central areas. Additionally, many of the standard rates and fees are paid by your tenants who operate their businesses from your building. Buying commercial real estate in Melbourne, Sydney, Brisbane or any other high growth region i is definitely worth considering if you want to invest for the long-term.
2. Double Check State and Local Regulations Before You Buy
In our digital era, it’s easy to browse properties on a national scale. What you need to remember when exploring beyond your local horizons, however, is that State and Municipal laws, regulations and fees can vary widely between regions. If you’re eligible for certain grants or allowances, double-check the conditions surrounding your desired location.
If you plan to build and develop, get as much information as possible from the local council about the necessary permits. These processes can be extremely lengthy, so don’t risk delays by procrastinating on this research.
3. Don’t Buy If You’re Feeling Rushed Or Pressured
Professional advice is a necessity when you’re exploring your options in commercial and residential real estate. Your agents, financiers, and financial advisors will be able to help you gain greater insight into the properties themselves. They’ll be able to fill you in on vital information you won’t find online. When it comes to making a final decision, however, you need to feel confident in saying “yes” and knowing that it is your decision.
Be selective with the advice you take on, especially if it’s coming from relatives or friends. Unless this is a shared investment, you are the only one with a personal stake. Likewise, if you feel that an agent is pressuring you to make a purchase, hold off on your response. Investing is not something you want to do on a whim.
4. Don’t Make Decisions Based Solely On A Grant
If you are lucky enough to be eligible for a grant or concession such as the First Homeowner’s Grant (FHOG) or reduced stamp duty, then you should definitely look at how it can be used to your advantage. Just be mindful that conditions always apply. You may not be able to receive the grant based on various factors. The FHOG, for example, favours new homes, buying in rural areas, and purchasing land. If you need to alter your investment choice in order to receive a concession, you might want to reconsider whether it’s worth it. Think about the long-term costs and your goals to ensure you don’t end up paying more or buying in a desolate area.
Investing in property is as exciting as it is difficult. Give yourself the upper hand by taking into account the above tips and getting good advice from a trusted professional. And remember, the final decision is up to you, so trust your gut!