What’s the first step to look into when purchasing a property?

First things first, finance. I have seen a lot of people miss out on their dream property because they don’t have their finances in order. This can be extremely frustrating and disappointing, especially when you have your heart set on a home.

Every circumstance is different and it could take anywhere from a week to four months depending on your situation to be in a position to buy a home.

So before you start shortlisting your favourite properties on Domain, set up a meeting with your bank or broker to commence your finance approval to save time, heartache and money.

When is the best time to buy?

If it was me entering the market for the first time, I'd look at what the market is doing. Is the property market going to rise over the coming years? Is it set to decrease? These are important factors to consider, especially when it comes to your deposit.

I find that a lot of first home buyers are waiting for the market to slow and in turn saving more for their deposit, but it’s almost impossible to save as fast as house prices are increasing. The market is constantly shifting, so you’ve got to just jump in when you can or you risk totally missing the market (and a property). The first two years are hard, but I can assure you that you'll start to manage it and make your way through the market. 

My number one tip would be to do all your own research on the market. Yes advice can be helpful, but there are so many opinions on the market and no one knows for sure what is happening - if we did, we’d all be rich!

What’s the first thing I should start looking for?

You’ve organised your finances, you’ve understood your capabilities and what you can afford, now it’s time to work out what you want that’s within your budget.

When purchasing a home, typically you are solving a problem. Whether that’s moving closer to the city, a train station, an extra bedroom for a baby, downsizing - whatever it may be, addressing the problem first is the best way to start looking for the solution.

We always have preconceived ideas of what we want in a home before we buy, but I always advise my buyers to look at the area first over anything. Buyers may have their heart set on an apartment in Cronulla, but the more they look, the more they research, they discover if they go a few suburbs back, they might be able to afford a 3 bedroom townhouse in Caringbah instead that is actually more beneficial for their lifestyle.

How do I know what a property is worth?

Once you have determined the area you want, it’s time to hone in on that area and look at as many properties as you can. This will help you understand the market in the area and what your ideal home is worth. The more properties you view, the more engaged you’ll be on the price. Many buyers who have been looking for a few months have a full understanding of the market they’re in and will be able to gauge the price before they’ve even seen it.

This is essential to ensure you aren’t paying too much for a property, but it can also work the other way. If a property is cheaper, you need to ask yourself why is this cheaper? Why hasn’t it sold? I always prefer to see my friends and family going for the property with lots of competition over the one that isn’t as popular because when it’s your turn to sell, more than likely you’re going to experience the same situation (which is a great thing when you’re the seller!).

What are the top things to look for in a home?

Everyone has different preferences within a home, but there are some key fundamentals to consider when viewing and buying a property. My main priority would be the floor plan. It’s essential that the floorplan works for you, and that you can envision your family living in it. A tricky floor plan isn’t like a dodgy bathroom, it is extremely hard to change and unless you are a builder looking to knock it down or entertain a full renovation, it’s not something I would suggest being interested in.

Another key factor to look for in a home is the presence of natural lighting. No matter how much you renovate, paint or redesign, you can’t change the lighting in a home. If you are buying a property in Summer, it’s essential to consider the winter lighting too as this can drastically change your home for a good six months of the year. 

Other factors to consider are more personal, such as a big or small garden for pets or family, the number of bedrooms a property has or if there is an open plan layout. They also vary per location, you might want water views in the Port Hacking or if you are looking in Cronulla, you’ll need as much parking as you can get. You also need to remember to trust your gut instinct, if you love a place and it’s a realistic price, then go for it. You know better than anyone if a property is right for you.

Should I purchase a new or old property?

With the surge of new developments taking over the Sutherland Shire, it can be easy to be tempted by the glossy, high end finishes, ready to move right in properties. Not that they don’t look amazing, but it can be quite hard to spot any fundamental problems for a long time.

Although they might not be attractive initially, an older block may be better because the cracks and problems are already there, i.e you know what you are getting and they have been looked after as they’ve been standing for a long time. You can make it what you want inside and can potentially put more of a personal touch on it than a new build.

Never purchase an apartment without first assessing the strata report, this will highlight any fundamental problems, including structural issues within the property, as well as how the strata itself is functioning. It will tell you if there is a problem with the sinking fund or capital works fund, if the strata managers haven't been proactive with the block, or if the strata fees are low but there is a big spend coming up (which you’ll have to fork out for on top of your mortgage, bills and monthly strata fees).

If the strata report comes back with a lot of issues, I’d recommend turning your attention away from that property and starting your search again for a place that has a stronger report. I can guarantee this will save you time, energy and money in the long run!

I’ve found the property I want to buy, how do I secure it?

You’ve been looking for 3 months, you know how much you want to spend, you have your finances in order and maybe an extra 5% if it’s a particularly special property to you, how do you make it yours?

Houses aren’t like cars, they are unique and only a few perfect properties pop up throughout your search, therefore it’s essential to make a move as soon as you can. Once you’ve determined a price, completed all your checks and are ready to go, I suggest talking to the agent and understanding the owner's expectations in terms of selling before an auction. If they are open to selling prior to an auction, put your offer in, pay the full deposit and submit a 66W certificate with the contract (you’ll need to get this from your solicitor). This means that if they accept the offer the sale is done, you can put up the sold sticker and the property is off the market. If you put your best foot forward, it’s hard for an owner to turn that down.

Similarly, with a private treaty in an expression of interest scenario, you need to figure out what the owner wants and how to best cater to them. If they want a certain figure and you are willing to pay that, don’t play games, just go for it the same way as above. 

If you do what you can and the owner still doesn't accept, it’s time to switch your strategy up for an auction.

How do I win at auction?

Once you’re at the auction, it’s important to go in with the utmost confidence and bid first. This makes other buyers nervous as they think you are going to walk away with it and they may potentially back out of the auction early themselves as they will assume you’ll do what it takes to secure the property.

My first and foremost tip would be to assess how much the property is worth against the current market vs what you think it is worth to you and what you are willing to pay for it. You need three prices in  your head:

• The one you’d love to pay

• The one that you’d maybe pay

• The one you will definitely not pay (ie if someone paid this price you wouldn’t be disappointed it wasn’t you)

This will help you avoid any heartache or disappointment down the line and won’t leave you thinking “if only I paid an extra 10k”. 

It’s important to assess the property and who will be bidding before you go into an auction. If it’s a potential development site, lots of builders with extra cash might be bidding, but don’t let that deter you - go along anyway as you never know what’s going to happen on the day and it’s always a learning curve either way.