Owning any type of property at any age is a significant feat in anybody’s life. It shows that you’ve made efforts and you’ve been dedicated to the goal of owning a property. However, to own one, you need to prepare for it thoroughly.
It doesn’t matter if you’re a first-time buyer, or you have experience as an investor. A checklist can help you a lot because you can make the entire thing more manageable. So, we’ve decided to provide a guide to help you navigate buying an apartment in Australia.
1. Be Realistic About Your Budget
Make sure you thoroughly evaluate your financial situation. Even before you start looking for an apartment, you need to know where you stand with your money. Do you have enough savings? Can you afford a down payment? There’s also the thing of additional legal fees.
Another good idea is to get a pre-approval for a loan. You can get a good idea of the amount you can borrow. Also, if you get a pre-approval for a loan, you can show the sellers you’re a serious prospect.
2. Do the Necessary Market Research
The price will depend on the area you’re looking to buy in. You can look on Floople or similar websites, and you can get some insight into the prices of the apartments in the wanted neighborhood.
Take future development plans into account. Make sure you’re getting the right location. The thing they say is the most important in real estate and its value is “Location, location, location.” This entails looking for easy access to public transport, schools, healthcare, etc.
3. Look at Potential Properties
When you determine the location, and you know the amenities are suitable for you. You can start looking for the apartments you’re going to potentially buy in the neighborhood. When you shortlist the choices, make sure you inspect them.
It’s important to take a look at the condition of an apartment and see if there are any signs of damage. Hire a professional to take a look. An inspector can prevent you from making a mistake and even save a lot of money.
4. Make Sure Everything Is Legally Clear
A property under dispute can cause so many complications in the future. You need to make sure that there are no legal disputes, and that the apartment has a clear title. You can have a solicitor help out with this type of check.
There’s something called the strata regulations. Most apartments in Australia are part of this scheme. This means you’ll have the apartment entirely to yourself, but there will be other common areas for which you’ll have shared ownership with other owners of the properties in the building.
5. Time for the Offer
Flats to buy need to be given an offer. You need to negotiate the price when you find an apartment. Now, it’s time to use the data you’ve gathered from step two of this checklist and offer a fair price. But, be prepared, because your fair price might not be fair to the current owner.
Another thing, and, we would say, a necessary step in real estate purchase is the preparation of the sale contract. Once you and the owner agree to all the terms, you can have a solicitor prepare the contract. Review and sign it.
6. Finally Buying It
It’s always good to do one more inspection before the settlement to see if the apartment is in the same condition as it was on the day of the offer. Once you do this, you can see if everything is as claimed by the contract.
Once the settlement day comes, your solicitor or conveyancer can handle the money transfer and the ownership transfer. When everything is good and done, you get the keys. This is the time to be excited because you’ve gone through almost all the steps of the checklist.
7. Aftermath of the Purchase
Okay, we admit it, we’ve only written ‘aftermath’ to get you a bit more excited. But, it’s more heavy lifting than excitement. It’s time to plan your move, get going with the movers with the things, officially change your address, and send that memo to the utility companies.
Finally, settle into your apartment as your new home. Try to socialize and introduce yourself to the neighbors. It’s nice to have familiar faces around you and to see who you’re dealing with when it comes to your immediate surroundings.
Why It’s Good to Invest In an Apartment?
It’s always good to invest in an apartment because they’re easier to sell, the prices of apartments usually go up and rarely come down, and there’s a lot of potential for rental income. Even if you have taken out a loan to buy it, you can subsidize that loan by renting the apartment.
We know that when you have a house and your own backyard it’s different, you don’t have to deal with anybody, and you don’t have to share certain areas with anyone, it’s all yours. But, you also lack the security of an apartment.
The cost of maintenance is lower for apartments than houses, and there’s a sense of community when you’re living in an apartment building instead of living in a house.
Conclusion
When you decide to buy an apartment in Australia, it’s a step that can help you settle down, or it’s an investment that can help you diversify your portfolio. However, there are considerations you need to take into account, and if you follow this checklist, it’s likely that you’ll buy your apartment in Australia the right way.
