Checklist For Buying A House –
Avoid Future Expenses And Save

Checklist for buying a house – a free checklist that will assist you to confirm your decision to buy a particular property or alert you to the fact that you may still need to keep looking.

Investing in property is one of the biggest investment decisions that you will make so take your time and research diligently.

Whether you are looking for investment in rental property, considering buying your own home or financing investment properties – make sure you do your homework first.

Checklist For Buying A House

  • Can you complete the paper work and credit checks to get pre-approved qualification of how much you can buy for based on your monthly net income?
  • Are you aware of what your mortgage repayment will be for a particular purchase price?
  • Do you know what the less obvious administration costs may be: bond registration costs, initiation fees, deeds office levies, insurance cost and lawyer fees?
  • Have you consider incidental fee: moving costs, reconnection costs for amenities and telephones?
  • Have you determined the location where you would like to invest in property?
  • Have you been advised that generally it is wiser to invest in the best location and area that you can afford?
  • Are you aware that generally you get a better return on your investment by buying in a well- established area?
  • Are you aware that the value of a property, like a stock market, depends on a number of factors: nearby development, a buyers or sellers’ market, current and predicted interest rates, supply and demand in the area?
  • Have you spoken to neighbors regarding crime, noise pollution and personal safety in the area?
  • Have you researched the amenities in the area – are there good schools, police departments, medical facilities, business centres, shops and public transportation to suit your needs?
  • Have you considered that timeless houses tend to remain in demand while highly fashionable house styles may lose their appeal as current tastes change?
  • Have you asked and received in writing from both the home owner and the estate agent, whether they are aware of anything wrong with the house or unit that you are considering buying?
  • If you are buying a townhouse or apartment, have you received permission to receive the full financial statements and minutes of meeting from the body corporate governing the complex or building?
  • Are you aware of all the costs involved when buying sectional title properties: rates, taxes, levies and maintenance costs?
  • Have you completed, preferably with the assistance of a credible professional house inspector, a complete house audit and inspection?
  • What is the state of the roof – rusty, damaged broken tiles or leaking?
  • Can you see visible water damage like stains on the ceilings or sagging?
  • Is there mould on the ceilings and the internal walls?
  • Is there evidence of rising damp like the paint on the walls bubbling and peeling, especially if it is closest to the floor?
  • Have you noticed any cracks wider than a hairline crack as this could indicate poor soil or structural concerns relating to house movement?
  • Does the plumbing work well with decent water pressure and no leaks?
  • Is there or will an electrical certificate be made available verify that there are no electrical problems?
  • Have any alterations that have been made to the existing structure reflected and approved on the plans and at the local council?
  • Have you checked that everything is legal and did you seek legal advice before signing the contract?

Don’t forget to add looking for passive income to your checklist for buying a house – it could be an effective part of your retirement planning.

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