The best way to buy your new home or investment property is to buy the ‘best’ – simple, right? But what defines the ‘best’ property for you? It’ll differ greatly depending on whether you’re a owner occupier or an investor. Whether it means buying property in the best suburb, buying best within your budget or buying a property best suited toward your lifestyle – best means something different to everyone. When it comes to investing, there shouldn’t be emotional factors influencing your maximum budget – so really, you should never overpay for the right property. If demand pushes the price up, it’s not the right property. In the latest Murphy Jacobs Property Advocacy blog, Director Paul Murphy presents his three tips to avoid overpaying for property, and how to know when it’s time to stop bidding.
1. Know the Market
Put simply, research is the key to success. To avoid overpaying for property, prospective buyers must be willing to do their homework – or turn to a property advocate for help. By researching comparable properties in surrounding suburbs – and knowing a true comparable property – attending auctions and getting a real feel for the market, you can begin to understand true market value. Of course, this is where a buyer’s agent comes in handy – someone who will save buyers time, offer expert advice and use buying strategies based on facts not emotion.
2. Location, Location, Location
Aim to buy the best property you can afford in your preferred location. While it’s tempting to consider flashy properties popping up in outer city suburbs, it’s important to think beyond a shiny kitchen and walk-in wardrobe – what will attract the best capital growth? As the old saying goes, ‘buy the worst property on the best street’. That said, in today’s market you’ll be fighting hard against other buyers! This is where an experience advocate comes in, capable of bidding your behalf and thinking purely with logic.
3. Overpaying Restricts Capital Growth in the Future
As an investor, overpaying for a property instantly impacts on your return. If you’ve paid $10,000 more than you needed to, it’ll take months and months of rental income to recoup that loss. Not only is there risk of restricting future capital growth, but poor investment decisions could impact your future portfolio.
Weigh up the property’s ability to grow in value over time – it’s time in the market, not timing the market. This is where a property advocate will utilise their market knowledge to present an investment strategy that can withstand property trends and provide long-term market stability. Anyone can buy property and hold onto it for decades to come – the difference is always in the return.
At Murphy Jacobs Property Advocacy, we execute a well-researched, logic-based property acquisition strategy to ensure your investment best suits your lifestyle, budget and prospective portfolio. Find out more about how Murphy Jacobs Property Advocacy can support your next property acquisition today.