What should I look when buying an Australian Property?
We caught up with our Property Specialist, Jack Baily, a Property Growth Manager at Milk Chocolate Property. We asked Jack what we should look for when buying an Australian Property?
Here are his five essential Tips for purchasing an Australian Property.
Ask Yourself, is this Australian property a Unique Asset?
As yourself, is it a unique asset? Is it a one-off unique standout property? A Unique Asset will achieve the greatest return on your investment. Does it have a view? Fantastic garden, north-facing living area? Is it on a pleasant tree-lined elevated street? It will create the ability to manufacture equity and increase your yield to ensure the portfolio works as hard as possible.
Is this Australian Property in the best possible location?
Check the property's location in the suitable Local Government Area (LGA). Research for planned and proposed infrastructure projects and investment, research the area's schools and zoning, green spaces, facilities, transportation, and services. Does it have the potential for foreseeable gentrification and evidence of historical performance?
Key no-gos for us are busy roads (main roads or thoroughfares), an undesirable aspect for the region, potential flight path noise, negative, planned development, and, from a property perspective, the capital improvement that has exhausted all of its potential value.
Does this property have character archetypal and charm?
Traditional Character homes never date, they are classics that increase in values with time if they are well looked after and maintained. Here is a quick Australian architecture timeline for you.
Old Colonial First Fleet - 1793 Elizabeth Farm Cottage to the 1840’s. Georgian, Regency, Grecian, Gothic Picturesque
Victorian 1840’s -Georgian, Regency, Free Classical, Mannerist, Victorian Italianate, Second Empire, Filigree, Free Gothic, Rustic Gothic, Tudor,
Queenslander Style - 1840s.
Federation 1890-1915 - Queen Anne, Arts and Crafts, Bungalow, Filigree
Inter - War - 1915-1940 - Californian Bungalow, Old English, Spanish Mission, Georgian Revival, Streamline Modern, Ashgrovian.
Austere - 1940-1950, Waterfall Art Deco, International Style - In Walk Harry Seidler!
Look for these key traditional home features;
Look for a home that represents the character of the particular area you are purchasing in.
Traditional Character Homes can not replicate character homes cheaply.
They are generously proportioned, potentially boasting larger room dimensions and high ceilings.
Traditional Character Homes are Timeless properties that retain much of their aesthetic charm.
They tend to feature hi-quality craftsmanship from yesteryear, boasting superior structural qualities. The structure usually consists of Australian Hardwood and therefore was built to last.
Traditional Character Homes - Renovators Delights: Those that haven't aged too well are also given heavy consideration in our property search; Look for a property that we can renovate to add value.
Traditional Character Homes are likely to generate a strong emotional connection with potential purchasers, increasing the likelihood of a premium outcome.
Is it considered a generous block of land for an Australian property in the Area ?
Another advantage of Traditional Character Homes is that they typically come with larger blocks.
The Land was significantly cheaper when the Traditional Character Home was built.
They usually come with a sizable garden or a garage.
When purchasing a property, the Land is the asset that appreciates – not the buildings. The Land is where most of the property's value is.
Look for above-average land size for the area.
More Land increases your options; you can extend a home, build a granny flat, subdivide, or make the most of the yard space.
When it comes time to sell, a large block of Land is a win for the occupier and the owner – each of these can add serious value to a property.
If we're purchasing an apartment,
Think small.
Any building to consider must be boutique in nature.
Look for a minimal amount of other apartments on the title. Some banks see high-rise apartments as having a higher risk of investment loss.
Different lenders have different rules and anything over five floors may cause a problem.
Certain suburbs can be more difficult to obtain a loan for an apartment. Consult with your mortgage broker for more information, as this may affect your reselling value.
Has the Australian Property been built to a high standard?
When purchasing a property, have the property assessed by a building inspector to evaluate the quality and execution of the build.
Examine the property to see where we can add value through renovation or further construction.
Opportunities to renovate or further construction will offer more value when it is time to sell.
Assess fittings and fixtures, cornices and architraves, tile selection in wet areas, floorboards, the timber or type, and the laying techniques.
When considering a renovated property, look at the wardrobe cabinetry to ascertain whether it's a custom-built solution or one boasting significant gaps. The latter indicates it's an off-the-shelf product designed to save money.
Look to see if the electrical switches are updated. If all the light switches and power points match, this could indicate a higher standard renovation and a more recent property rewiring.
These great tips were provided by Jack Baily from Milk Chocolate Property. The Expatriate always tries to make sure all information is accurate. However, when reading our website, please always consider our Disclaimer policy.
