5 things to watch when buying Sydney property
If you get it right, a Sydney property is an excellent investment in a world-class city. However, if you don’t keep an eye out for certain things, you may end up paying more than expected (in more ways than one). Seeing as we know the ins and outs of Sydney real estate, here are six factors to consider before buying a property to help you stay within budget and ultimately grow your wealth, as well as having a wonderful place to live.
Know what your outgoings will be
When buying an apartment, ask to look at the strata meeting minutes. This gives you a good idea of the building’s cash flow, the strata fees (and how much each apartment contributes) and if there’s a reserve fund. This is money set aside for additional works like renovating common areas or upgrading fencing. It’s important to remember that apartments with pools and lifts generally have higher levies. Don’t be alarmed by strata levies – after all, they go towards the upkeep of the property and it’s great to have things like gardening done for you, but do factor them into your budget.
What is the neighbourhood like?
Firstly, get a good sense of what the neighbours are like, as you are going to be living in close proximity to them. This is something you can ask the agent, but it also pays to do your own research. One of our top tips is to take the time to drive by the building at different times of the day to get a feel for the building’s harmony level.
While you’re there, take your time critically viewing the location. This is crucial whether you’re living in or renting out the property. Go for a walk and then do your online research. Focus on nearby amenities such as shopping centres, schools and public transport links. Then as mentioned below, look up future developments. This might bring your home’s future value up or down if, for example, an upcoming build will block your million-dollar view.
What are the additional costs?
One of the most important things you can do when buying property is get a building and pest inspection report. This will help you fully understand the property’s condition, as there are many problems invisible to the naked eye. This includes structural issues, electrical and plumbing issues, roof maintenance and pest problems.
But you should also do a thorough personal inspection to ensure everything, from lights to toilets and built-in appliances, are in working order. Knowing what you’re getting into and the costs involved will inevitably save you money in the long run.
Besides the strata fees mentioned, other additional costs include:
- Conveyancing fees
- Mortgage fees, including Lenders’ Mortgage Insurance, if necessary.
- Stamp duty
- Home and/or landlord’s insurance
- Property management fees if it’s an investment property.
- Moving costs
We recommend adding five per cent to the purchase price to cover these fees. Add this to your budget to be safe and you’ll thank yourself in the future.
Are there future construction projects planned?
There’s nothing like buying your dream home only to be in close proximity to a construction site for endless weeks or months. It’s not only the noise that’s hard to live with but the dust and debris. You can check out upcoming work via the local council and state government websites.
Are you using your head or heart?
We know it can be difficult, but with house hunting for a home to live in or a rental property, it’s imperative you think with your head over your heart. Remove your rose-coloured glasses and take into account all of the aforementioned facts, figures and feelings. Use your head to ensure the property is viable and within budget before pulling the trigger.
Talk to us
Fortunately, Home Property Agents has been helping buyers in Neutral Bay and surrounding suburbs for decades. As an independent boutique agency, we have the dedication and know-how to provide you with the best buying and selling advice. Feel free to contact us today.
