A Good Purchase Starts With Knowing What to Reject

Before looking at suburbs or properties, we need to understand what the purchase needs to achieve. That includes your budget, borrowing position, cash flow, timeframe, risk tolerance, preferred property type, existing portfolio and future plans.

A property can be a good asset and still be the wrong purchase for you.

We look at the forces that can influence demand and supply over time. Depending on the location, that can include local employment, industry diversity, population and household growth, new housing supply, building approvals, vacancy rates, rental demand, owner-occupier demand, infrastructure, transport, schools, healthcare, affordability and how active the resale market is.

The aim is to understand what is driving the market rather than simply looking at what prices have already done.

A strong suburb does not make every property in that suburb a good buy. We assess the property itself.

That can include the street and immediate location, land size and shape, property type, condition, layout, natural light, parking, noise, neighbouring properties, renovation or maintenance needs, rental appeal, comparable sales, planning controls, overlays, insurance considerations and future resale demand.

We review recent comparable sales and the current market to form a view on value. The goal is not to guess the lowest possible price. It is to understand what the property is worth in the current market and what we believe is a sensible limit for you.

That price range then informs the negotiation or auction strategy.

Before recommending a purchase, we make sure the relevant checks are being completed. Depending on the property, this can include contract review, building and pest inspections, strata information, rental appraisals, planning controls, flood and bushfire information, insurance enquiries and local property management feedback.

Some checks require legal, building, finance or tax professionals. We help coordinate those inputs so you can see the whole picture.

It is easy to build a case for why a property might perform well. We also ask what could go wrong.

Risks can include oversupply, reliance on one major employer or industry, flood or bushfire exposure, poor-quality developments, high ongoing costs, body corporate issues, awkward property features, limited resale appeal or a purchase price that relies on everything going right.

The goal is not to complete a purchase as quickly as possible. If the price is wrong, the due diligence raises concerns or the property does not suit the brief, we are prepared to recommend walking away.

There will always be another property. There is no reason to force the wrong one.