How to buy the 'perfect' property before Easter 2022

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on January 25, 2022 Fact Checked
How to buy the 'perfect' property before Easter 2022

Property expert Lloyd Edge provided his top six tips to secure the perfect home quickly.

Since house prices rose at the third-fastest rate in history in 2021, it's 'no surprise' that Aussies want to know what the housing market will look like in 2022.

With many experts predicting house prices will keep steaming ahead, Director of Aus Property Professionals Lloyd Edge (pictured below) believes house prices "won't decrease that much" unless APRA intervenes further.

"With our current economy and the fact that our international borders are now open, this will also drive demand," Mr Edge said.

"Taking this into account, many buyers will be looking to secure a home before the end of the first quarter to beat out the competition."

Mr Edge said a common barrier he comes across is people getting overwhelmed by the steps it takes to purchase a property. With this in mind, below are his top tips to help people comfortably get through their home buying journey.

Lloydedge.jpg

Step 1: Strategise

Mr Edge said the first step is to know your why - as in, why you are purchasing the property - and create an investment strategy.

"Why should you have a goal? You need a reason and vehicle that motivates you to stick to your investment strategy," Mr Edge said.

"Take a moment to pinpoint your ‘big picture lifestyle goals’ – is it financial freedom, working for yourself, semi-retirement, overseas holidays, helping underprivileged communities?"

He said that once you have determined this, you can turn your dream into a concrete number and start working on your strategy.

"Next, you will determine your where, when and what to buy," he said.

"Your goal will inform this decision, for example you might buy a blue-chip property for long-term growth or you will build a duplex for cashflow."

Step 2: Secure finance

Mr Edge said that a lot of people believe you need millions of dollars to invest, but that this is 'far from the truth'.

"Getting a mortgage is not always a simple thing to do, so I highly recommend consulting a mortgage broker," Mr Edge said.

"They will assess your financial position and explain to you how banks will see it, explain the different types of interest rates, ascertain what loans are likely to suit your goals and strategy, determine the best bank and outline any changes you’ll need to make before applying for your home loan of choice."

He said that if you're doing it on your own, you need to show lenders who you are, where you are looking to buy, the type of property you want to buy, your intent in doing so, and how much you need to borrow.

"I always recommend having a strong buffer for costs, as it’s easy to underestimate - and saving enough just to cover your deposit will only lead to financial strife," Mr Edge said.

Step 3: Hire the dream team

"To successfully finance and purchase properties, and to meet a multitude of legal and practical requirements involved on time and within budget, you need to build up a dream team of professionals," Mr Edge said.

"These include a buyers agent, a mortgage broker, a financial planner, an accountant, a solicitor or conveyancer, a building and pest inspector, a quantity surveyor and an insurance representative."

Step 4: Find the right property

Mr Edge said that less than 5% of properties available are 'investment grade', and said that you should be looking for a home with the 'property trifecta': instant equity, cashflow, and growth.

"To achieve this, shortlist properties based on the following factors: good regional growth drivers, presence of several different industries, approved increased government spending in the area, transport links, low local unemployment, low vacancy rates and proximity to education and childcare facilities," Mr Edge said.

"If the property meets your budget requirements, aligns with your strategy and fits the above criteria, I would encourage you to invest or purchase. Searching can take some time, so be patient!"

Step 5: Signing and settling

"Once you’ve found the dream property, placed a bid and been accepted, contracts must be signed between you and the vendor," Mr Edge said.

"Make sure you take note of any special conditions, disclosures and insurance in your Contract of Sale (CoS)."

Mr Edge said it's also important to know what can be negotiated in the contract, such as the cooling-off period, settlement period, deposit amount, and fittings and fixtures.

"On settlement day, all representatives of the parties, including any financiers, communicate with each other to exchange legal document," he said.

Step 6: Landlord's toolkit for investors (if applicable)

If you purchased an investment property, Mr Edge said it's important to understand your responsibilities as a landlord to avoid costly mistakes, maximise your returns, and protect your investment:

"The six steps of becoming a landlord are buying a property, understanding the legislation set out by the state or territory level of government, appointing a property manager – don’t just go with the cheapest or biggest agency, finding quality tenants – screen them by running a credit check, assessing their employment and rental history and contacting their references, signing the lease and maintaining the property – it’s important to determine who pays for repairs and maintenance."


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Lead Image by R ARCHITECTURE on Unsplash

Lloyd Edge image supplied

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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