When you purchasing a property, you need to ditch the emotions. It is time to be cold and calculating. Yes, the property will be part of your life for at least a few years, but you eventually are going to need to resell it. You want that sale to be at a profit. Sticking to these basic guidelines when buying a house will help you avoid a bad decision.
1. Do not purchase the most expensive house on the block. Try to purchase near the low end and upgrade. This will help you realize appreciation on your property and grab a nice slice of profit when selling.
2. Always try to buy in the best school district. This is true even if you do not have kids and have no intention of every having them. Remember, potential buyers of your property may very well have children and they will be looking in areas with good schools.
3. Whenever possible, try to stick to three or more bedroom properties. Yes, that two bedroom is cute, but most buyers are looking for something bigger. Again, we come back to the issue of kids.
4. Buy a newer house. The older a house, the more potential buyer's will be suspicious there is something wrong with the property. The only real exception to this is an older house that is unique or has been extensively remodeled.
5. Location, location, location. As if you did not know this one. It is the oldest cliché in real estate, but also the most accurate. Never, ever buy in a bad location. Always buy in the best location you can possible afford.
I tend to focus on the opposite for number 5 because i have found that you can make positive cash flow in undesirable areas ignoring any need for growth which is not in the current Australian property market mostly.
What could look undesirable can be made to look pretty in some other cases as well. And that that does not look pretty is a diamond worth cherishing when you can get CoCr of upward of 50%.
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