Top Tips When Buying Property: A Guide For Real Estate Investors.
Would you want to invest in real estate? The purchase and sale of property is one of the most profitable businesses in Australia. Read the article below to learn a few tips on property buying.
The property must be reasonably priced. Other than this, below are a few factors that determine the appreciation of property.
- Planning zones. These determine the current and future use of the land. For instance, the area could be zoned for commercial, industrial or residential developments. You will make losses if you decide to put up a residential dwelling in an industrial zone.
- Planning overlays. These are essential as they will help you identify areas prone to flooding. The overlay can help you initiate flood mitigation measures such as improving drainage by installing land drainage coils.
- Location. The property should be convenient for future users. For example, it should be close to roads and amenities such as banks, shopping malls and hospitals.
- Size. The property should not be too small. Buyers would want a spacious property where they can build a swimming pool or a gazebo or add extra parking space.
Ask your solicitor to conduct some due diligence. For example, he or she should conduct a title search to ascertain that the land is registered under the seller's name. The solicitor should also ensure that the property does not have outstanding charges such as land rates, electricity and water bills. Besides, the property should not be under any dispute.
If you are buying a building, the solicitor will organise a building inspection. The inspection seeks to examine the structural integrity of the building and the condition of various amenities inside the house.
Renovations and Subdivisions
If you are buying land, your intent may be to subdivide it and sell it as smaller plots. Ask your solicitor to give you an approximate quote of the subdivision process. It will help you decide if the venture will be profitable.
Homes and commercial buildings may require some renovations to increase their market value and make them more appealing to buyers. If the property requires too much work, the seller should be willing to let it go at a throwaway price.
Experienced solicitors will help you secure bank financing. Besides, they will help you negotiate interest and repayment terms. Ask your solicitor to explain the terms of the contract of sale. For instance, it should compel the seller to conduct necessary renovations.
Always engage a qualified and experienced solicitor when buying property. He or she will help you determine the profitability of the venture. Additionally, your solicitor will negotiate the selling price and help you secure bank finance.
For more information, contact a solicitor.