An old wives tale will tell you, that smart real estate is buying the worst house on the best street.
Whilst it is wise advice, there is far more to smart purchasing than to be inspired by The Block, buy a dump and take on a DIY reno project, and cash in on the premium.
That is, of course, every home owner’s dream.
A smart home buyer understands the process of purchasing real estate, where to look for it, what to look out for, and how to sign the dotted lines for it. An eye for cosmetic potential is great, but consider how to land it in a competitive market first.
Location, location, location
Darryl Kerrigan once said in The Castle, that buying property is all about “location, location, location.”
Infact, location was so important that he purchased a home next to the airport “in case they ever needed to fly one day”, and next to power lines because they are a “reminder of a man’s ability to generate electricity.”
Sadly, this sort of location ain’t going to get you far.
Proximity to amenities and transport such as shops, schools, trains and buses are great for families who want convenience, whilst lifestyle options such as cafes and restaurants are an added bonus. More tips on location can be found by an article by Domain here.
Livability is also a factor to consider when it comes to location. Homes on main roads tend to be less popular due to noise or safety. Homes near power lines are also less lucrative due to fears held by some about the health risks, although many studies have shown this to be inconclusive.
Buying a property with a convenience and lifestyle mentality will ensure that you are buying smart, and guarantee capital growth.
Does it pass the test?
A building and pest inspection by a qualified inspector can save you from a life of misery and headache in your next property purchase.
Many home buyers make the mistake of undertaking a building and pest inspection only if the home appears to look old, or if there are obvious cosmetic inconsistencies. The fact is, regardless as to whether the home is new-ish or very old, you don’t see what’s under the surface.
Small internal problems in the structure of a house, can translate into thousands of dollars down the track. Termites, extensive structural damage, even extensions that haven’t been built to standard are all things to look out for.
Building and pest inspectors are not cheap, but can save you time, hassle and money in the long run.
A smart home buyer will always ensure that any prospective home ticks all the boxes.
What you see is not all that you can get
The Internet, newspapers and magazines are a great way to find a property for the first time, but doing this alone is not what a smart home buyer will do.
Many Real Estate Agents either have authority to, or know of, any properties that are currently not on the open market. That is, homes that are either just about to hit the market, or home sellers who have chosen to not market their property and sell it ‘off-market’.
One of the great ways to ensure that you are buying smart, is to make contact with multiple real estate agents in the areas that you are considering, where they are able to advise you or keep you up-to-date with any opportunities that meet your requirements.
Whilst most home sellers decide to put their homes on the open market, particularly in a competitive market, not all home sellers think the same. Some decide to sell off-market due to privacy, emotional reasons, or simply to cut costs.
Survival of the fittest wins the race
The thought of successfully purchasing a home at auction seems like a distant and almost-impossible achievement. For some, paying too much is the only viable way to smell success.
However, with some tactics up your sleeve, auctions are a great way to buy property.
Despite the widely-held belief that auctions drive prices far above market value, buying a property at auction is one of the fairest and most transparent ways to purchase real estate. The process is conducted by an auctioneer, is bound by legalities, and you see what your competition is putting on the table.
One of the best ways to succeed at auction, is simply to bid with confidence. Many bidders resort to throwing cheap bids towards the end, most of which are out-bidded. The key is to bid boldly, scare your competition, and show dominance. Some more bidding tips can be found here.
So at your next auction, bid hard with larger increments, and create the impression that you have money to burn.
To quote The Castle again, Darryl Kerrigan also once said that he “couldn’t work out how he got the house so cheap. It’s worth almost as much today as when he bought it.”
When purchasing your next property, ensure that you know how to buy smart. Buying cheap doesn’t always mean smart. Knowing what to look for, and how to buy it, is what constitutes smart buying.
At Nguyen Real Estate, we pride ourselves on providing a level of service that allows you to purchase smart. If you are currently looking for a property, please contact us today.