Residz Team 4 min read
“If you’re planning your first foray into property ownership, then research becomes absolutely critical.” - Robert Klaric, property expert and Residz ambassador
Once you’ve saved a deposit it’s tempting to jump to action and start the process of buying a house.
But buying a house is a significant financial investment, possibly the biggest investment you will ever make.
It’s a long-term commitment that ties you to a location and limits your flexibility. And, it’s an emotionally significant decision, a place where you might establish roots in a community and meet lifelong friends.
To avoid potential pitfalls when buying such a major purchase as a home, you must do your planning and research so you can make an informed decision.
As a leading source of great information about 12 million properties around Australia, we here at Residz.com are happy to set out what this entails.
Making an informed decision
First up, what is an informed decision, and why is it so important?
Put simply, making an informed decision means gathering and analysing relevant information and considering all available options before taking action.
So well before you look at an open home, it’s critical to:
Collect accurate and reliable information. Would you qualify for a mortgage? What areas are worth considering? Who can you talk to?
Identify all possible alternatives or options available to you. Make time to brainstorm and consider different courses of action that meet your needs or solve your problem (i.e. if you’re sick of living at home look at not just buying a home to live in, but alternatives like “rentvesting” - buying an investment property to rent out while you rent a different house or unit).
Evaluate pros and cons of the possible options.
Weigh the importance of factors. For example, is being near a beach more important to you than being near friends and family?
Consider your values and preferences. How does each option align with your values and goals?
Seek expert advice: When buying a home it’s highly recommended you engage qualified experts, as well as consulting with friends, family, and your wider circle who have relevant experience or advice.
Assess potential outcomes: Consider the potential outcomes or consequences associated with each alternative, including potential risks, benefits, and any unintended consequences.
Making trade-offs. Buying real estate often involves making trade-offs. You may have to sacrifice some things on your wishlist so that you can include others.
Taking time for reflection: Rushing into buying a house can work out for some, but most successful purchases come after careful consideration.
Pitfalls of not doing research
Without doing research to make an informed decision, pitfalls might include:
The house you choose to buy can have a significant impact on your lifestyle and daily life.
Factors such as location, proximity to transport and amenities, bushfire or flood risk, commute times, neighbourhood safety, internet speeds, and access to schools and healthcare facilities can affect your quality of life.
It is important to carefully consider these aspects (and dozens more) before purchasing a home.
As Residz ambassador Robert Klaric says in his book “Secrets of the Property Expert” you have to think clearly, realistically, and as unemotionally as possible about your property needs and try to set the wants to one side.
“Buying at the right time, in the right place and at the right price are the keys to the capital gain that you’ll be looking for when you come to sell and move further up the property ladder.”
More research with Residz
Residz specialises in all sorts of research that can help renters, buyers and sellers find out information about property.
First photo by Alen Rojnic on Unsplash
Second photo by Beth Macdonald on Unsplash
Third photo by Stefan Lehner on Unsplash