Finally get off the rollercoaster of offering #allthethings by uncovering your true potential
Expert buyer’s advocate, founder of Amy Lunardi Property and the host of The First Home Guidebook - an educational podcast & online course
that empowers first-home buyers with all the necessary tools and knowledge needed to buy their first home.
If I had a dollar for every time someone asked me “what makes a good property?” I’d be duck-diving into a pile of money by now!
It’s kinda like asking “What makes a good holiday?” or “What makes a good tv show?” in that there is no one-size-fits-all solution and the possibilities are limitless of what might float someone’s boat.
What makes a property good for anyone depends on personal preferences, financial circumstances, and their property strategy. But what makes a property good for one person, might not be a suitable option at all for someone else!
On that note, I’m diving into 5 key reference points to consider that could inherently deem a property as a goodie.
A good property is one that…
A good property is one that fits your property strategy and achieves what you need the property to do for you. Your strategy should always take precedence, then you can find the best property that meets your criteria.
Regardless of whether you’re buying a home to live in or buying an investment property, your first question should be what does this property need to do for me? Is it one which needs to perform with capital growth? Is it one which needs to provide me with a good rental return?
An ideal property is one that ticks all of your boxes and fulfils your property strategy, so for that reason what makes a good property will be different for everyone according to their unique criteria.
A good property is one that doesn’t carry significant financial risks. You want to ensure that your purchase won’t result in the bank rejecting your application or demanding a higher deposit if it’s deemed as risky.
Pre-approval from the bank is contingent on their assessment of the property’s risk factors for example non-residential zoning or unconventional titles, factors like proximity to power lines, train tracks, a property that needs excessive renovating or is unlivable, even a particularly small property may also raise red flags.
These properties tend to have limited demand, making resale the future difficult due to their negative features. This leads me to my next point…
Resale ability is basically the level of desirability for buyers and being able to sell that property relatively easily in future when the time comes.
While homeowners may not always prioritise capital growth, the ability to sell a property smoothly and potentially make a profit is a commonly desired bonus.
The key is to select a property that appeals to a broad range of potential buyers, and aim to avoid properties with undesirable features such as high traffic noise, lack of amenities, or oversupply in the area.
Nobody likes unexpected costs that can put a strain on their finances and a good property is one that keeps these to a minimum. By conducting thorough due diligence from both a building AND contract/owner’s corporation perspective you can uncover any issues or hidden fees and avoid costly repairs down the line.
Lastly, a good property is one that doesn’t force you into premature selling due to unsuitability or issues arising from a lack of due diligence. Factors like overspending, poor location choice, ignoring red flags or not prioritising your non-negotiables could all lead to a premature sale and negative financial situations when you factor in further costs to sell the property such as agent’s fees, marketing & styling costs etc.
It’s not worth the risk – always thoroughly evaluate the property against your strategy, involve all relevant parties, and ensure your mortgage is within manageable limits.
So what makes a good property? Individual situations and preferences aside, these 5 general considerations, in my opinion, are an excellent yardstick for assessing the suitability of a property.
By aligning your property strategy with your requirements, minimising financial risks, assessing resale potential, avoiding surprises, and ensuring long-term suitability, you’re on your way to discovering your dream property.
Want to learn more? Check out my online course The First Home Guidebook to help you buy your first home faster – without the fuss.
If you’re looking for professional support for buying a property, check out my buyer’s advocacy services over at Amy Lunardi Property.
A must-have checklist for any aspiring property buyer - you’ll never look at a property the same way again.
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