There are positive signs that the housing market may be emerging from the depressed to flat state it has existed in over the past few years. The Daily Telegraph announced recently that Mortgage demand highest in three years.
With the RBA lowering interest rates to historically low levels and the Australian dollar dropping against the Greenback, signs that the housing industry is in the early stages of recovery will be welcomed. Weekend auction clearance rates remain high with purchasers actively pursuing available properties. As the economy claws it’s way back, interest rate increases may be back on the agenda.
If you are in the market for a new property, here are some tips to ensure you are ready to strike when the right property comes along:
- DO get finance approval from your lending institution before you start negotiating on a property or bid at an auction
- DO make sure that you ensure you have sufficient finance to cover additional items required to purchase a property such as stamp duty, legal’s, cost of reports moving costs and so on.
- DO your Pest, Building and Strata Inspection reports.
- DO make sure your solicitor is available at short notice to discuss any urgent matters especially if it is sold at an auction.
- DO get your solicitor to review any contract for any premises you are considering buying BEFORE you attend the auction or BEFORE you sign it (if not sold at auction) or BEFORE cooling off expires (at the very least!).
- DO NOT attend any Auction without a full loan approval.
- DO NOT bid above your maximum available funds if attending an Auction.
- DO NOT rely on word of mouth warranties on a property, from the Agent or the Vendor, make sure you undertake the necessary investigations and inspections.
- DO NOT buy on impulse, make sure you do your research and know the property and the surrounding area you are looking at buying BEFORE you start negotiations.