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[MoreMore Insights] Common Mistakes Home Buyers Make


Australia is one of the livable countries in the world. People from many countries migrate to Australia in pursuit of a high-quality life. As a result, Australian property market is booming in the last decade. But there are some common mistakes that buyers should avoid.



Buy Investment Property with Owner Occupied Property Standards


Owner occupied property and investment property are different in demand. The former can be selected according to personal preferences and favorite decoration styles, but the latter might be on the contrary. The mainstream style of the market should be considered, otherwise there will be great limitations in renting and selling. In essence, investment property is just a product, and its starting point is to pursue higher return. Some buyers have a preference on land, and they think the house have higher return in value than apartments, so that they purchase houses for investment, ignoring other factors. While at the same time, an apartment in the city center is easier to rent than a house in a remote area, and the rent is relatively high compared to their prices. The cost of a house can invest multiple apartments separately. Different types of properties have different features and different purposes. Buyers should objectively understand the advantages and disadvantages of different types of properties as well as their own needs and purchasing capacity, and comprehensively consider buying a property.


The Rise in Property Prices


When buying a property, the important thing for buyers to consider is whether the property price will increase. Property price increases vary across Australia. The property prices in different cities vary greatly, and the geographical factors will affect the price growth. At the same time, some properties are increasing in value, while others are being devalued, so buyers should ask for professionals’ advice, and find the right time to act decisively, so as not to miss the investment opportunity in case of increasing the budget.



Living Area



Most young people who just start working live in rented houses or live with parents. They will find the right time to buy a property when the funds are sufficient. But they would just look at the properties in the communities around them, or blindly pursue the properties close to schools, without considering more choices. After spending a long time, buyers might still not be able to find a suitable property, so that they not only increase budgets but also lower the requirements for property, which is not worth the cost. Therefore, buyers should take a broader view and step out of the comfort zone, maybe they will have different experiences.


Transportation


In Australia, taking the train is the most ideal way of transportation, because it has no traffic jam that travel to and from downtown to suburb, fast and convenient. Most investors directly take trains as a measure to choose property in Australia. But with the improvement of the transportation network, the gap in transportation costs is shrinking. So, buying a property does not have to be near the railway.



Reality Check


Before you start looking at available properties, make sure to give yourself time to think about your financial situation and commitment capacity. Such as:


Job security;

Overall Debt and its repayment;

Deposit Amount;

Living expenses;

And also the potential rate hike in the future.



Preparing Finances


Estimate how much you need to borrow overall. Talk with your mortgage broker to assist you in understanding your borrowing capacity. Check your deposit, understand the home loan, compare the interest rates and costs. And also to make sure the home loan is suitable to your lifestyle and goal.

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