When you’re buying a property, careful research is the key to success. From making the initial decision about how much you can afford to spend, right down to locating the right property and making your purchase, doing your research to make sure you’re fully informed will help to ensure you make a profitable investment that will be a real financial asset for you now and into the future. But where do you start? In this article we outline the research steps you need to take when climbing on to the property ladder.

Property Research

Property Research

Step 1 – financial research
The first step in buying a property is setting your budget and organising financial approval for a home loan. Researching how much you can afford to spend is as simple as listing all of your assets – including the cash you may have on hand for a deposit – and working out your expenses. This will show you how much you can afford to spend on a deposit and home loan repayments.

Once you’ve completed this basic research of your financial position and decided your budget, it’s time to talk to us – your local mortgage broker. We’ll sit down with you to discuss your financial position, your goals for the future and then help you choose a mortgage product that’s right for you. We’ll then research the home loan market for you and select the loan options that best suit your objectives and give you the best rate.

Step 2 – What type of property do you want to buy?
Once you have your budget firmly in mind, it’s time to decide what type of property you can purchase. Obviously the amount of money you have to spend will influence what type of property you look at purchasing, but there’s a lengthy list of options and you need to do some research to help you choose the one that’s right for you.

Are you interested in buying an apartment, a unit, a house or perhaps a commercial property? If you are purchasing the property as your own home the decision will be influenced by your personal needs. But if you are purchasing the property as an investment, then you may consider all property types as suitable – as long as they give you the return on your investment that you need for it to be financially viable and profitable.

Step 3 – Where do you want to invest?
If you’re buying a property as your own home, this step will be about researching a suburb that best suits your personal lifestyle and the future needs of your family. But if you’re buying an investment property, it pays to look further afield and consider the locations that have good capital growth potential and will give you the best return on your investment.

Saavy investors spend time researching to find areas with capital growth potential and then focus on finding properties in these areas that are within budget. This requires access to good property market data that gives you figures on the latest trends. If you need help accessing this kind of information, then just ask us.

Research suburbs that are showing steady capital growth, and suburbs adjacent to ones that are already popular. Don’t be afraid to consider properties in other capital cities that may have better capital growth potential than the city in which you live. If you are buying an investment property, consider locations that will be popular with tenants – suburbs with good schools, public transport links, shopping centres, amenities and access to the CBD.

Step 4 – Locate the property and research its viability
Once you have an idea of your budget, the type of property you want to buy and general locations you may want to invest in, you can start researching to find suitable properties to inspect.

If you’re purchasing an investment, you will need to research each property very thoroughly before you decide on one to purchase. First you’ll need to determine the right price for the property so that you don’t pay too much. You can do this by researching the sale prices of comparable homes in the area to see how yours stacks up.

Next you’ll need to do some research with real estate agents to determine what kind of rental return you can expect on the property you have chosen. It’s important to determine whether or not the rental return will cover all the expenses – including the mortgage – so that you can work out if it is a financially viable investment for you and suits your budget and investment goals.

If you’re looking to purchase a property soon, this guide will help you get started on your essential research. Of course, you can get started on the first step of researching your budget and organising pre-approval for your home loan right away, just by talking to us.

We’re here to make sure you get the best home loan product and rate available for you, considering your personal financial situation and goals. There are many competitive home loan products available on the market right now, so it’s a good time to get started. Give us a call today.

At Element Finance Fremantle, we ask 100% of our clients what they think our Mortgage Brokers can do to improve their service for them and for all their clients. It is one of the most important ‘elements’ of the process, ensuring we are always improving our systems and service. We really value constructive feedback although it is enjoyable to receive testimonials as glowing as this from Candice last week:

“Mike was extremely professional and met our every need. Will definitely be recommending element finance to others in the future.”

It lets us know we are on the right path and definitely doing the right thing. If you were ever asked, how would you review YOUR bank or broker’s service?

Excellent Service in Fremantle

Excellent Service in Fremantle

02 Jul 2014

Can we fix it?

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CBA have this week released their economic forecast expecting interest rates to rise a full 1%  over the next 18 months. With the lowest rates home loan rates you have probably ever seen, is it time to FIX IT? Call Element Finance Fremantle today to discuss the benefits.


Fix your interest rate?

Fix your interest rate?

01 Jul 2014

RBA Rates On Hold

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At its July meeting today, the Reserve Bank of Australia decided to maintain the official cash rate at 2.5 per cent, as predicted by most market analysts. Keeping the cash rate unchanged is in line with the RBA’s intention to create a period of stability on interest rates.
At the start of the new financial year, we can usually expect Australia’s property market to slow down for the winter months ahead. However, the period of stability on interest rates has created a lot of activity in the housing market, with auction numbers in most capital cities remaining high throughout June.
Analysts say that the continuing property market activity is being led by investors who are taking advantage of the low interest rate environment to boost their portfolios. However, the high numbers of properties remaining on the market during this traditionally quiet time of year means there are plenty of opportunities for those looking to make a purchase.
Our loan market remains very competitive, with many lenders still introducing low fixed rates, along with great variable rate options. First home buyers, as well as those looking to refinance and invest, can expect some great deals ahead of the predicted rise in interest rates later this year or early next year. If you’d like to find out how to take advantage of the current low rates to reach your goals this financial year, then talk to us today.

The Reserve Bank appears more downbeat on Australia’s economic growth prospects, suggesting interest rates could be on hold for even longer.

The minutes of the central bank’s June board meeting highlight the RBA’s concern about how the tough federal budget and expected falls in mining investment could impact the economy.

Although March quarter economic growth was stronger than forecast, that was mainly driven by solid mining exports which were not expected to be sustained, the minutes said.

“The expectation of substantial falls in mining investment, below-average growth of public demand and non-mining investment remaining subdued for a time implied that the pace of growth was likely to be a little below trend over the rest of this year and into the next, before gradually increasing,” the minutes said.

Economists said the RBA appeared to be less confident about Australia’s growth prospects, raising the prospect of the central bank moving even further away from hiking rates.

“At the top of the RBA’s concerns appeared to be the sharp decline in mining investment and the fiscal consolidation set to occur,” St George economist Janu Chan said.

“The range of concerns from the RBA and recent indicators suggesting a loss of momentum in the June quarter is suggesting that a rate hike is still some months off.”

The RBA has kept rates at the record low of 2.5 per cent since August.

During its June meeting it repeated its familiar line that “the current accommodative stance of policy was likely to be appropriate for some time yet”.

RBC Capital Markets head of economics Su-Lin Ong said “modestly dovish” minutes maintained the view that the RBA will sit on the interest rate sidelines for a while.

“The RBA’s long-held narrative has been for low rates to assist in supporting the rates-sensitive sectors of housing, consumption, and non-mining investment as mining-driven capital expenditure begins to drag more heavily on activity,” she said.

“In today’s minutes that confidence appeared less so.

“History tells us that during times of uncertainty, the RBA tends to sit on its hands and await further data and developments.

“This is consistent with an extended period of steady cash, which we expect will continue well into 2015 with a modest tightening cycle unlikely to begin before the June quarter.”

CommSec chief economist Craig James said the RBA had played down the recent good GDP growth figures, making it clear that rates are stuck in neutral.

“The Reserve Bank has downplayed a number of factors that alternatively could have lent support to a change in monetary policy stance,” he said.

To ensure your home loan is still competitive, contact an expert mortgage broker from Element Finance Fremantle for a free analysis.

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