Plenty of Fish in the sea… (Or are there?)

 

Picking a builder is arguably more difficult than picking a wife (I am definitely in trouble for this one!).  There are plenty out there, so how do you pick one? More importantly how do you know if they will do the job right? Do you just choose one and hope for the best…

When people compare builders, often the builder with the glossiest brochure, trendiest display home or cheapest price wins! However not all builders are created equal!


Big isn't always better! Going with a well-known builder does not necessarily mean you will get a better product. Most of the time, a smaller boutique builder can offer a more personalised service and better value for money. Always do your research and speak to people who have used their services before to see how they found the experience. The horror stories I have heard regarding some builders are truly mind-boggling.

When comparing specifications and inclusions, make sure you compare apples with apples. You cannot compare on price alone. Make sure you delve deeper into what the inclusions actually are with each builder when you compare. Often some builders advertise saying all inclusive, but the price is well and truly hiked up because of this and you may be better off starting with a basic inclusion list and adding on upgrades.

Few other things to be mindful of when building:

Bigger isn't always better in terms of floor plans either. A functional floor plan that doesn’t stray from the norm, is often the best way to way to go. Have a look at a few display homes so that you can get your head around the size of rooms, lay out etc. Remember though; make sure you do not get sucked in to the sales pitches and the beautiful interiors. Display homes are designed to make you fall in love with the house, although most of the fixtures and fittings are upgrades that you need to pay an arm and a leg for!

Do not over capitalise even if it is your own home. Always have the resale value in mind. You may think you will live in the house you are building for the rest of your life, but circumstances can change, and you can outgrow the house. You do not want to add too many fancy things to the house that it is priced -out of the norm for the suburb you are in.

Your house should also appeal to a broad cross section of the market. While the house should be built to your taste, try not to get too outrageous with your specifications. A glass splash back for the kitchen with a picture of your pet may seem like a good idea to you, but I guarantee it is not!

If possible, try to be mindful of Feng shui concepts when designing a house.  For example the front/main door should not be directly aligned with another door or big window.  The front door should also always open inwards. A door opening outwards is pushing away most good energy, thus the house cannot benefit from good Feng shui. Even if you don’t care about these concepts, when you try to resell your home, a potential buyer may. Try to maximise as much natural light as possible for living areas and have good airflow. If possible, have two living areas, and at least two bathrooms. This will increase the value of the house tremendously.

Another point to note, do not underestimate the time it takes for the construction of your home. Allow for bad weather, holidays, title delays, supplier delays, etc. If you are going to rent while building, make sure you budget for at least an extra 3 months’ worth of rent, in addition to your full mortgage repayments.

As always, research is paramount in the property game.

To buy or not to buy that is the question

The last few weeks have been quite hectic for me personally to say the least! We put our house on the market, sold it and bought a property all within 4 weeks! While my wife and I were traipsing through open for inspections with the view to buying our next property, it struck me how different it felt when I was on this side of the fence…..Being the buyer….

 

I found I was looking at properties very differently to what I usually do. Whenever I inspect a property on behalf of a client, I have my trustee checklist where I allocate points to each room based on a pre-determined set of critical criteria. It’s all about the re-sale value, the potential for growth, rental demand, what works need to be done on the property, what and the list goes on….

The last few weeks I found myself looking at things like, where we were going to have our morning coffee, where my son was going to play cricket, where my other future hypothetical children would sleep, if my dog would like the house etc… all emotional, mushy stuff. (I’ll deny it if you ever ask me!)

Two completely different points of view, but both equally important when buying your home. I almost wished I had thought to bring along a buyers advocate, so that someone could look at things objectively and tell us where to draw the line without getting too carried away.

Luckily, my wife and I managed to get a hold of ourselves and be disciplined in our purchase, because we both firmly believe that you make money on a property at the time you buy. If you pay too much for a property, it can take years to recover from that set back. A home at the end of the day is an asset and probably your biggest asset. Why shouldn’t you buy wisely and make money out of it?

Due diligence regarding the area you are buying in, when and how often  the property you are looking at has changed hands,  comparable sales in the area, planned infrastructure upgrades in the area, transport links , access to schools are some of the critical things you should be looking at when buying your home.

Another tip to remember is, if you are buying at Auction; make sure you are very clear what your maximum budget will be. Better still get someone else who is not emotionally involved to bid on your behalf. The real estate agents will be in your ear all through-out trying to get you to increase your bid and it is very very easy to do just that when you can see the home of your dreams slipping away right in front of your eyes…

I am speaking from experience when I say; you make money when you buy, so buy wisely. If you are not sure, seek professional help!