5 steps to avoid buying the wrong property

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In a conversation with Nestegg, Michelle May’s buyer’s agent Michelle May told prospective homeowners to be patient and do their research before buying a property.

1. Don’t be fooled by the bank’s pre-approval offer

Although banks create service criteria, it may not be in the owner’s best interest to reach the maximum of their pre-approved limit.

Instead, investors should focus on a mortgage rate that they are comfortable managing.

“You have to consider the reasons why the bank pre-approves you. Sometimes what they allow you to borrow is way more than what you can cover. So don’t let that fool you, ”Ms. May said.

2. Know what are your non-negotiable in a house

Ms. May asked investors to try to prioritize quality over quantity, whether the property is for homeowner or investment property.

“Really, tenants and homeowners want the same thing. A pleasant environment which is their home, ”said the buyer’s agent.

“So just because a tenant doesn’t pay their mortgage doesn’t mean they don’t want good lighting or a place that isn’t suitable for purchase.

“I would also say never buy on a main road. Ideally, you want to be in a residential area.

3. Why you don’t just buy a house, you buy in a neighborhood

The buyer’s agent cautioned against buying the right home in the wrong neighborhood because homeowners must always live outside the home.

“I think it’s crucial. As soon as you leave your front door, you want to feel at home again. Whether you’re going to get your coffee, drop your kids off at school, or walk your dog, you want to feel at home, ”Ms. May said.

“People sometimes forget that. You might fall in love with the property of your dreams, but if the area is foreign to you, it may take a while to adjust.

“Homeowners must be asking themselves: is this my hood? Is this myour tribe? “

4. How despair could lead to disaster

With Sydney and Melbourne in particular having a strong buyers demand but a shortage of stock, Ms May told investors to be patient.

“There are a lot of buyers because of this chronic shortage, which arose from a shortage that started in 2017,” she said.

“We are always behind in previous years in terms of stocks. But the point is that life goes on, people keep starting families, changing jobs, and because of this, combined with a lack of stock, buyers become desperate.

“It leads to crazy results at auctions or people pitching deals to agents. This scares me a bit because I am seeing results that are outside the property value.

She said that while she understands buyers are under pressure, it will quickly become daunting if they buy the wrong property.

5. “I bought it, now I hate it”: financial disadvantages of selling soon after purchase

While investors can avoid making this mistake by surrounding themselves with the right people or doing extensive research, Ms. May believes itIt is important not to stay too long in one place.

“Because of the cost of ownership, sometimes people ride too long,” Ms. May said.

“If you are in this situation and you realize that it is not good for me, you just have to bite the bullet and be done, because the longer you stay in the market, the more traction you will lose. .

“Sadly, you’ve got to take that loss on the chin to hopefully get ready for the next property.

“The market as a whole continues to grow, so it’s a dead weight if you hang in there. “

nestegg has already explained how investors can get out of debt faster.

5 steps to avoid buying the wrong property



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Last updated: October 21, 2020

Posted: October 21, 2020

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