We’ve all heard the horror stories of what can go wrong when purchasing a property. However, there are ways to ensure you are protected and know what you’re getting into when you purchase your home or investment:
• Legal Advice
It is recommended that you obtain legal advice before purchasing a property. This can be done by engaging a solicitor or a conveyancer. Regardless of which way you choose to go, you should get advice on easements and covenants relating to the property you intend to purchase.
Before the cooling off period expires, it is worthwhile to arrange a pre-purchase pest and building inspection. These inspections are well worth the cost as they can give you reassurance that you are buying a property with no hidden termite infestations or problems with the structure of the building which you might not notice yourself.
Another good inspection, which is recommended, is a walkthrough which you conduct yourself, on a rainy day. If you initially inspected the property on a sunny day there might be leaks that you are unaware of, so do yourself a favour and arrange another walkthrough on a rainy day.
• Be financially aware
Most people probably know that interest rates are very low at present but could rise again at any time. As such, it’s a good idea not to buy a property that you may struggle making repayments on if the interest rate increases. However, another cost to be aware of are the strata fees.
If you are buying a property that is listed as Strata Title instead of Torrens Title, such as a unit or flat, there are strata management fees that need to be considered. Make sure you’re aware of what the quarterly fees are, check to ensure they have a sinking fund which is healthy enough to cover the common area repairs and maintenance and check to see that they are appropriately insured.
By being aware and investigating these issues you can ensure that your property purchase goes smoothly and you don’t end up the subject of one of those home purchase horror stories.