When buying property in Australia, conducting detailed due diligence is crucial to avoid common pitfalls. Key considerations are as follows:
- Your Personal Checklist: Everyone has personal preference when buying home number of bedrooms, apartment vs house, parking space, nearby schools, amenities, transport etc. Write down them and workout which ones are important.
- Bank Loan Pre-Approval: Secure pre-approval from your bank to avoid missing out on your desired property and the risk of forfeiting your deposit later.
- Building and Pest Inspections: Engage professional inspectors to identify any structural issues or pest infestations that could result in expensive repairs.
- Alternative Suburbs: Keep an open mind to nearby suburbs, as the ideal property might be just next door.
- Property Title and Ownership: Verify that the seller has a clear title to the property, free from any encumbrances or disputes.
- Zoning and Land Use Regulations: Confirm the property’s zoning is suitable for your intended use, whether residential, commercial, or other purposes, as this can affect your borrowing capacity.
- Legal Compliance: Check that all property modifications or extensions have proper council approvals and adhere to local building codes.
- Future Developments: Investigate any planned infrastructure projects or developments in the vicinity that might impact property values or living conditions.
- Renovation Budget: If planning renovations, calculate the expected costs and consider starting with specific sections of the property.
- Cash Buffer: Maintain at least 5% of additional funds as a safety net in case the bank values the property below your purchase price.
- Strata Fees: This is ongoing cost for property management you have to pay to strata. Hence you should find out how much you will be paying and request strata minutes to identify any major upcoming expenses such as installation of new lift, pool repair, refurbishing of building itself etc . As these one off expense will significantly increase your strata fees moving forward.
By addressing these factors, you can make a more informed and confident property purchase decision.