How To Do Your Own Property Research

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Buying property is one of the biggest purchase decisions you’ll ever make. The truth is that investing in property isn’t cheap with the price rising as interest rates remain low. So it goes without saying that you need to carry out thorough research before you put down money.Some investors prefer to leave the research process up to their real estate agent. However, it’s still important to know how to do your research. Firstly, understand that the property market is led by supply and demand. And that supply and demand, in turn, is affected by the economy. With that in mind, today, we will look at how you can do your own property research.

What are your property criteria? The type of property you buy depends on your purpose for the property. So, you need to decide on what you will be using the property for. Is this property going to be your home? Or will it serve as an investment property?If you are buying a home, your criteria will be different from buying for business. The major difference is that your home needs to meet your personal needs. While an investment property needs to give you the best financial returns on your investment. When researching a future home, you’ll look at things like the size of the backyard or whether there is a deck. Since you will be living in the space, you will want certain things to be a specific way. For a property that you will be renting out, on the other hand, different things will be important to you. For example, what the rental demand and yield return will be, the age of the property and how this will affect your depreciation schedule.

If you’re interested in a particular area, look into it to see if it matches up with your budget and your expectations. Before you decide on a property, you should already know your budget. So you should already be prequalified for a certain amount.You’ll notice in your research that rent price varies among different areas. In the same breath, check out the tenant turnover rate. Is this somewhere that people move to and stay for the long term? Or will you need to be looking for new tenants regularly?Find out if the area is developed. Are the necessary amenities like schools and medical care within close proximity?In addition, find out what is the government and private expenditure for the area. Evidence of this generally attracts interest in an area. Similarly, if large companies are moving there, it strengthens the economy. Right now, Sydney has one of the best local economies and this has a lot to do with infrastructural elements in place. For example, Sydney’s employment rate is 4.2% and is projected to drop in the coming year.
“Next year, with the trends continuing, we’ll see Sydney’s unemployment rate with a 3 in front of it…This means if you’re worried about being made redundant with a hefty mortgage hanging over your head, you shouldn’t be.”  – Dr Andrew Wilson, Chief Economist, My Housing MarketBuying property in a developing area is a good investment. Especially, if you plan to resell the property in the future. New businesses in the area automatically increase property value.

Find out about when it was constructed and what it was used for. You might think it’s not important to know the date of construction for your new house. However, this affects what renovations, if any, you can move forward with.Also, look into the flood history of the property. If the property has been flooded before, it will cost more to insure. Then even further, this can affect whether you get a loan from a lender or bank. A history of flooding can also impact how much you can later resell the property for if you go ahead with the purchase.“Our advice to you as a buyer is to be well prepared before you enter into the market. Make sure you have clarity on what your buying capacity is and what your expectations are. When you choose to act, act with confidence and clarity, and put your best offer forward.”  – John Percudani, Managing Director, Realmark.It is wise to get professional help when you’re researching new property. However, there are some steps that you can feel free to take on your own. Buying property is not a decision that you make overnight. This process involves a lot of time and research to make sure that you are making a positive decision.
MLS Finance has a large network of people that can assist with the research and ultimately help you achieve your property ownership goals.