Think with investment in mind
Friday September 19, 2008
Regardless of whether you are buying a property to live in or a property for investment alone, you should always think of a property with investment in mind before approaching a mortgage company. While you may find a property that is seemingly the house of your dreams to live in, if the price cannot be justified in an investment sense, then you may be better off looking elsewhere. As long as your family is comfortable, it is often better to choose the wise investment rather than just trying to afford the house with all the comforts.
Location
Yes, it's a cliche, but it's true. Location is a prime concern when looking at a property. If you are looking for a family home, for instance, that is nowhere near a school, then there'll be a good reason for a lower price. Buying student accommodation for investment purposes should mean that there is a university or TAFE somewhere near the property as well. Whatever kind of property you are after, be sure that it is in a location that places it near what a buyer would want.
Price
Never allow your judgement on worth to be clouded by your emotional reaction to a property. If the asking price is too high and the seller won't be negotiated down, move on. Your mortgage company may be happy for you to borrow more, but you certainly won't be if you sell the place for a loss in a few years.
Difficulties
Unless a property is really worth it, legal difficulties with purchasing a house should be a big red flag. If a seller tries to convince you to take on the legal costs of freeing a house up for sale, you may want to reconsider whether your interest in the property is worth the hassle and whether that investment could end up costing you in further legal fees even when you own the house.
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