8 Savvy Tips When Buying Your First Property in Sydney, Australia

Have you thought about investing in a property in Sydney? One reason why you should do such an investment is that it creates a stable cash flow and a passive income. If you want a less volatile form of investment, that’s on property. You don’t even need any specialised knowledge to invest in it. A property is an investment that you can actually touch and see. 

While investing in a property is considered safer than on shares and other investments, here are eight savvy tips you should still consider when buying your first property in Sydney, Australia. It’s better to be informed than to make a wrong choice of property. Read on.

1. Organise your finances and assess your capacity.

Before you get lost in your search for a property, make sure you have the capacity to pay for it. Buying a property is expensive. Get an idea of what you can afford by sorting out your finances first. 

If you have debt, deal with it now and work out a payment strategy so you can secure a loan. You should also think of the security of your job or a stable source of income so you will be able to save a big amount for the deposit or to ensure that you won’t miss your payments. Generally, a deposit of at least 20% of your prospective property’s purchase prices is required by banks and financial institutions in Australia.

2. Explore your financing options.

In case you’re short on cash and savings, you can opt for other ways to fund your purchase. How’s your credit score? You can check and compare many lenders to see which type of loan will fit your needs and how much you can borrow. Also, you should determine you’re eligibility for a home loan or any other types of such kind of financing. 

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3. Do your research.

Don’t just grab a cheap investment. Take your time to research and decide about it so you won’t deal with the consequences of being hasty. Whether you look online, get recommendations from a friend or family member or talk to a real estate agent, do your research.

Suburbs and regions in Australia differ drastically in terms of cost, availability and demand. Cost may be on top of your priority list, that is, if a property is something you can afford. However, you should also consider other things when you do your research. Put together what you want in a property and start checking your target property if it has what you desire. Choose the property that matches what you need. 

Also, are there any new roads being planned out or any other external factors that can affect your property? How about the neighbourhood? Learn as much as you can about the suburbs you’ve chosen. Additionally, ensure that there’s no lien on the property you’re eyeing to buy.

4. Inspect the property for any hidden issue.

Don’t be deceived by how amazing a property looks on the outside. Once you’ve found a potential property to buy, ask many questions from the previous owner or agent and inspect it thoroughly. You can hire a professional to do it. Although it’s an additional cost, it will help you discover any defects like faulty wirings. You wouldn’t want to find out later on that the place is infested with rats and other pests. Or there’s the smell of mould and animal odours that won’t go away. Taking the time to look at issues before buying any property will let you know what you’re about to purchase and what you could possibly deal with in the future. 

5. Think about all aspects of the property.

A good property is not just about price and its location. When you start searching for a property, consider its proximity to transport and amenities, the history of the area in relation to capital growth and demand/supply, the kind of materials used and whether it can be easily converted or adapted. You should also take note of what the local council is like, as well as the future infrastructure and building plans in the area.

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6. Work with experts.

When planning to buy a property, should you look for conveyancers in Sydney? Definitely. A conveyancer can assist you in preparing legal documents and handling the legal procedures of buying a property. You have also probably enlisted the help of a real estate agent to find the best property. Another expert that you should consider is a mortgage broker who can lend you a hand to find the right home loan for you. If you’re going to hire any of these professionals, just make sure that they can be trusted.

7. Plan on your investment strategy.

Why are you going to invest in property? What do you plan on doing afterwards? Putting your money out without any investment strategy is like playing in a game without a game plan. That’s why before you buy a property, it’s important that you understand your investment strategy so you can achieve your financial and investment goals. An investment strategy may not be required for some, but it can help you succeed in your investment. 

A strategy might simply be to acquire a property and let it appreciate over time. Or you can use its equity to buy another property. Another strategy is to renovate what you have bought and had it rented by someone for a higher rental yield.

8. Be updated.

Every once in a while, the property market changes, and it’s good to be aware of the price trends and fluctuations in the area you plan on investing in. Any changes in the area and in its demand may affect your plans. If you want to get into property investment, start learning about the market.

Acquiring a property in Sydney is such a great achievement. To help you avoid making mistakes and losing money, follow these tips to buying your first property. You won’t regret doing so as these tips can help you make an informed decision that won’t be costly in the end. 

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