Buying FAQs

The first step on the road to owning a home is making sure your finances are ready to go.

Usually, this means getting pre-approval from a bank. Completing this step will help you understand how much your budget will be, and therefore what areas and types of property you’ll be looking for. It also means you’re more organised and ready to hit the ‘go’ button when you find the right place!

We can help you work out how to get the most bang for your buck in the Byron Shire and assist with tips and tricks to help you along the way. If you’re at this step, it’s not too early to give us a call. We’d be happy to answer any questions and steer you in the right direction.

A buyer’s agent is a licensed real estate agent that represents the buyer, rather than the seller in a property transaction.

A selling agent is obliged to attain the highest possible sale price for their vendors. That’s great for the seller, but having your own representation is very important. Your buyers agent’s obligation is to protect your interests during the search, due diligence and right through the entire sale processes.

What we do for our clients:

• Source an array of suitable property options and unique off-market homes.

• Make sure that every precaution is taken during the due diligence phase to ensure you’re making a sound investment.

• Explain and assess building and pest reports, point out any potential issues or warning signs, help clients understand council records and paperwork.

• Negotiate a fair price, making sure every offer is as attractive as possible to the seller. This includes non-financial incentives.

• Navigate clients around the usual negotiation tactics that regularly see buyers overpaying by 100’s of thousands.

• Carefully shepherd the deal from acceptance to legal exchange, avoiding ‘gazumping’ and smoothing out any potential complications.

The bottom line is, a buyer’s agent will save you time, money, and a load of stress when looking for your next home.

How much money you can borrow will depend mainly on your yearly income. Generally speaking, you should be able to borrow up 5 or 6 times the amount you would earn in a year. You will need a deposit of around 10-20% of the price of the house, depending on the bank. Any expenses such as other loans and credit cards will also be taken into account when the lender calculates your ability to replay the loan.

It’s a great idea to reduce any debts you can, before applying for your mortgage. We can put you in touch with great mortgage brokers that will guide you through application process.

The answer to this question is dependant on a number of factors that will be specific to you and your property goals. Some factors that are commonly considered are:

1. The market in the area you’re looking to buy.

2. Interest rates.

3. What the area you’re interested in will look like in the next 5-10 years.

When it comes to interest rates, there’s pros and cons to buying in both a low or high interest rate scenario.

When interest rates are low, loans are cheaper more accessible. Great hey? Absolutely! But it can also mean a surge in competition for houses, and therefore, higher prices. For buying when rates are low, having a buyer’s agent will be a secret weapon in circumventing the crowds and stress of buying during a booming market.

When interest rates are high, people often shy away from taking out mortgages, or have less borrowing power. This isn’t necessarily a bad time to buy. In fact, it can be an excellent opportunity to purchase as prices can stabilise or even drop and there won’t be as many buyers about. If you can comfortably service your loan in this financial climate, you’ll be breathing very easily when rates drop. Navigating buying in this type of market can be tricky, with some sellers stubborn or unrealistic on price, but there can also be a lot more on the market. Having us on board will mean first access to more properties and will ensure that you don’t get taken for a ride.

Regardless of interest rates, some areas will be a good or a bad buy with regard to return on investment and capital gains.

Give us a call to discuss the buying climate in the Northern Rivers in more detail.

This is something that can be really frustrating for buyers. It’s common to hear that people spend weeks and weeks attending inspections and putting in offers for properties advertised within their price range, only to be heartbroken when they repeatedly sell for 200K over the top end of the guide.

There’s a number or reasons why this happens. It’s often advantageous to set a price at the more affordable end of what a property is expected to sell for to ensure the most amount of interest and offers.

The way to avoid this common frustration is to start looking at recently sold properties in your desired area, and specifically, ones that are similar to what you’re hoping to buy. This is a much better way to get an indication on pricing in any desired area.

When you engage us, you’ll get a straight answer on what a property is likely worth and how to get the deal done.

Firstly, you want to try to get an accurate picture of what the area will look like in the future. Are there any developments planned that will likely provide more jobs? Or, any developments that would diminish the appeal of the town?

For our clients we like to do full and in-depth check of local government plans for the town and also the immediate area to make sure your investment is safe. Imagine buying your dream property, then learning that the block next door has been approved for use as an abattoir. The zoning of your property will also dictate the income possibilities for you, and could restrict or permit things like sub division, holiday letting, building of a second dwelling, eco tourism etc.

If you’re planning to long-term rent the property, making sure you get an accurate rental appraisal and researching vacancy rates in the area are must do steps.

If you’re thinking holiday letting will be the right choice for you, let us link you with a letting agency to provide you with the best idea of expected return on your property of interest.