Sydney is a one-of-a-kind housing market. Purchasing property in Sydney can be difficult because supply is limited and the contest for available properties is fierce. These properties frequently seem to sell when they enter the real estate market, prompting emotional and despairing decisions to avoid losing out.
However, there are some specific issues to consider when purchasing Sydney real estate. We have compiled eight tips to assist you in navigating the purchase process, whether you are buying your dream home, apartment, or investment property.
Choose Your Investment Strategy
First and foremost, determine your Sydney property investment strategy. Some people may simply purchase a property and retain it for a significant period of time, waiting or renting it out as it appreciates over time. They can then utilize the equity to purchase a second home. This is a good strategy for Sydney properties because most properties will likely grow in price over time.
You could also buy with the intention of selling and “flipping” your property. Alternatively, you could buy, renovate, and rent it out to earn a higher rental income than you would otherwise. Whichever strategy you decide, you should preferably have a solid understanding of your strategy before deciding what to do.
Carry out the Research
Understanding the real estate market is essential. Participate in open houses and auctions. This will give you a good idea of what comparable properties are selling for. Knowing how much a property is worth will help you negotiate.
Purchasing a new home is likely to be one of the most important decisions you’ll make, and an online real estate search is an excellent place to begin. But bare in mind that nothing beats seeing a house “in person.”
The physical examination enables you to comprehend what a house has to offer. You’ll quickly realize that appearances can be deceiving, and a wide-angle lens is an excellent tool for making small rooms appear larger online!
Set aside some time every weekend to research and look at potential homes. Looking at 50 to 100 homes for sale will give you a better sense of the market. Maintaining a relationship with the local agents may also allow you to be notified of new properties even before they enter the market.
Write things down about what you like and dislike as you tour each house – this is crucial because it’s easy to forget what you saw four weeks ago. Schedule inspections of potential homes at different times of the day. Note any potential noise sources, such as traffic, neighbors, or the proximity of transportation hubs such as train stations and airports.
Make a Shortlist
You may also need to fine-tune your choices after viewing a large number of houses. Do you set attainable goals for yourself?
You’re unlikely to find a three-bedroom property for less than $500k, so you’ll have to settle for a two-bedroom house. Maybe a lock-up garage will have to go to make room for a car? As a consequence, consider expanding your suburb search.
It is now time to decide and eliminate properties that do not fulfill a specific threshold. Analyze your notes and list three or fewer features that you believe could be useful to you. This stage will help you clarify your goals and needs for buying a home and create a realistic shortlist.
Set a Budget (This Time for Real)
The very first step in creating a budget is to record your monthly expenses so you can see where your money is going and identify areas where you can cut back.
When you recognize where your cash is spent, you might think about cutting back on things like frequent takeout meals or that gym or TV subscription you don’t use. If you have extra money, you could keep it in a high-interest savings account for a future property deposit.
Look for a Savings Account With a High-Interest Rate
What good is a housing deposit in a bank account if it isn’t going to earn you money? Possessing a savings account with a high rate of interest and few or no fees will generate some extra money and help you achieve your deposit goal faster. That means you may be able to enter the market sooner.
The Land Tax
The NSW Government declared in the Budget of 2022-23 that first-time home buyers having purchased properties up to $1.5 million will have the option of paying a yearly property tax rather than transfer duty. Land tax is an annual tax imposed on the estate you own that exceeds the threshold of land tax at the end of the following calender year.
Your primary residence is exempt, and additional concessions and exemptions may apply. The overall worth of all your taxable property above the land tax free threshold is used to evaluate land tax, not on every individual estate. If the total value of your property does not surpass the threshold, you won’t have to pay any land tax.
Pest And Building Inspection
Obtain a Building and Pest control Inspection on the estate before making an offer. When purchasing an apartment, you should also conduct a strata search to assess the financial health of the apartment house.
Purchasing at an Auction
When you’re the winning bidder at an auction, you should be aware that there is no cooling-off period, which is there when buying property through a private treaty. You must also pay the deposit, which is usually 10%, instantly after the auction by personal check or deposit bond. As previously stated, you will need your solicitor to assess the contract, perform a pre-auction building and pest inspection, and also have your finances in order.
To get into real estate investment in Sydney, you should first learn about price trends and volatility in the areas where you want to invest. Be informed of any changes in the area over time, such as transportation infrastructure upgrades or planned developments.
Keep an eye on the changing demand in that area. Begin keeping track of how long it takes for homes to sell in specific areas and how much stock is available. Happy investing!