Property Investor Tips

The tips and traps of preparing to buy

Posted on Wednesday, January 06 2010 at 12:20 PM

The property pendulum is on the upswing, according to Property Pursuit managing director Meighan Hetherington, and to get in on this fast moving market buyers need to be better prepared.

For the last quarter of 2009, Property Pursuit reported 'days on market' as between seven to 10 days in some parts of Brisbane.

Hetherington said now is the time to get in on the action and secure a property before the housing supply declines further and faster.

"…we have already seen many homebuyers returning to the market, with many of (these) buyers spending time and money getting ready to go to auction on properties that are simply out of their price range," said Hetherington.

Hetherington has revealed her tips for buyers when considering a property:

1. Location: Does it have schools? Shops? Day care? Car parking? Major shopping area? Cafes? Sporting facilities?

2. Transport: How do people get to work in that area? How far is it to bus stations or train stations?

3. Demographics: Look at the potential demand of the property by matching the household demographics to the property.

4. Rent-ability: Review the logical layout of the home. Does it have adequate sized bedrooms? Are there usable living spaces inside and outside, and other features such as storage?

5. Potential: Is there an ability to increase the value of the property through renovation or development? Check the surrounding properties can’t become high-density blocks of units.

6. Affordability: Stay within the second and third quartile of prices in the suburb for price and rent.

And what she regards as the traps to be wary of:

1. Avoid buying with the heart and forgetting the head.

2. Avoid buying that 'bargain' property – there are usually major negatives that will stifle growth. If it sounds too good to be true, it usually is.

3. Don't miss good opportunities because you're waiting for the 'perfect' house. Every house will have trade-offs and compromises.

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