Imagine standing at the crossroads of your real estate adventure, your first home purchase or dipping your toes into Australian property investment. Whether you’re lured by the bustling chaos of Sydney’s urban jungle or enchanted by the serene allure of Brisbane’s coastal havens, Australia is a land of endless opportunities. Yet, within this banquet of choices, seven sins lurk, ready to ensnare the unsuspecting.
Worry not, for we are your faithful guides on this enchanting journey. As you uncover these sins, we’ll help you ask the right questions to gather the wisdom you’ll need to make the best decision. Now, it’s time to explore the Seven Deadly Property Location Sins.
1. The Sin Of Buying In High-Risk Locations
Australia is a beautiful country, but it has its share of natural dangers, like bushfires, floods, cyclones and droughts. Over the years, many homes and places have faced these issues, leading to loss and damage.
Before buying a home:
- Research the area: Look at past events. Has the place faced many bushfires or floods before? There are maps and data on the Geoscience Australia website that can help you.
- Ask questions: Talk to the person selling the house. Has the house ever been hit by a natural disaster?
- Get an expert opinion: Have someone check the house for weak spots. This can tell you if the house is more likely to get damaged in severe weather or bushfires.
- Think about protection: Consider houses built to handle these threats. Some homes are made to resist bushfires or cyclones better than others.
- Insurance matters: Living in places with a history of natural threats can make insurance more expensive. It’s important to know this cost before buying.
- Know the available support: Australia’s government offers help when disasters strike. It’s good to know what aid you might get if something bad happens to your home.
Being careful and informed lets you pick a safer home and be ready for any situation. You can use our postcode calculator to locate which areas are deemed low risk by the lenders (depending on the location). Call us on 1300 889 743 or complete our free online assessment form if you require expert help.
2. The Sin Of Neglecting Amenities And Infrastructure
When choosing a property, it is essential to consider how it fits into your lifestyle and daily routine. This includes considering the convenience of having basic amenities nearby and the ease of commuting to work or other destinations.
Here are some specific things to keep in mind:
- Proximity to essential amenities: Consider how close the property is to grocery stores, pharmacies, hospitals, clinics, good schools and other amenities.
- Commuting options: If you work or study outside of the home, think about how easy it will be to commute from the property. Consider the availability of public transport and the traffic conditions in the area.
- Recreation and leisure: Consider what you like to do for fun and how close the property is to your favourite recreational and leisure activities. This could include parks, movie theatres, gyms, restaurants and other attractions.
- Infrastructure: Make sure the property has access to essential infrastructure, such as water, electricity, and waste management services.
Consider how the property’s location and amenities will affect its future value. Properties in areas with good amenities and infrastructure are typically more desirable to buyers, which could mean a better price if you decide to sell.
3. The Sin Of Ignoring Future Development Plans
When purchasing a property, it is critical to consider how the surrounding area may develop. Future land use plans can have a large impact on the value of your property, as well as your quality of life.
For example, if a new shopping mall or park is being planned nearby, it could increase the appeal of your property and boost its value. This is because people are more likely to want to live in areas with amenities like these. Conversely, if a rehabilitation centre, industrial facility or major highway is being built nearby, it could decrease the value of your property by making it less desirable to live there. This is because these types of developments can bring noise, pollution and traffic congestion.
It is also important to consider how changes to local infrastructure, such as new roads or public transport, could affect your property; for example, if a new subway line is built, it could make your commute shorter and more convenient. However, it could also increase noise and traffic in your area.
Future land use information can be obtained from local governments, planning agencies, and real-estate professionals. By taking the time to research future land use, you can avoid making a costly mistake by buying a property in an area slated for development that you do not want.
4. The Sin Of Overlooking Local Regulations And Zoning Laws
Each of Australia’s diverse geographic regions has its own set of regulations and zoning laws that are specifically tailored to manage different types of land usage. Residential, commercial, industrial and agricultural zones all have distinct regulations that govern what can be built and how land can be used. These regulations are not arbitrary; they are designed to ensure orderly urban development, protect natural resources and balance different types of land use.
Here are some specific ways in which misunderstanding local regulations and zoning laws can affect property buyers:
- Legal issues: If you build or renovate your property without the necessary permits, you may face legal penalties, including fines and demolition orders.
- Construction delays: If your construction plans do not comply with local regulations, you may experience delays in obtaining permits and starting construction.
- Financial losses: If you purchase a property in a zone that restricts your desired use of the property, you may experience financial losses. For example, you may incur monetary losses if you buy a property on a residential site and then discover you cannot operate a business you want to run from home.
It is essential to consult with a qualified real-estate agent or property lawyer to ensure that you understand the specific regulations that apply to the property you are interested in purchasing.
5. The Sin Of Disregarding Population Migration
For investors, keeping an eye on local population migration statistics is essential. These statistics provide valuable insights into the demand levels within a specific location. Ignoring these numbers could lead to unfavourable outcomes down the road.
Ideally, you want to target locations with a positive net migration, meaning more people are moving in than out. This trend indicates positive signals for your investment. A rising population often signifies a robust economy, assuring a steady flow of tenants who can afford rent payments. Additionally, increased positive migration contributes to higher demand for properties. This aspect benefits you by allowing you to command higher rental rates and potentially reap greater profits when you decide to sell.
Failing to consider population migration is a common oversight, as many property buyers overlook the importance of these numbers. However, they hold a wealth of information about the potential success of your property investment. By paying attention to migration trends, you position yourself for more informed decision-making.
Here are some specific reasons why it is important to consider a location where the population is growing when buying a house:
- As more people move into an area, the demand for housing increases. This can drive up property prices and rental rates.
- More people means more businesses, more jobs and more spending. This can, in turn, further increase population growth and economic development.
- A growing population often means more amenities and job opportunities are available.
Note that a growing population is a positive for values only to a certain point. Eventually, a popular suburb will begin to outprice some buyers. Lenders may even become less likely to approve loans for properties in the area.
To understand the population migration trends in a particular area, you can look at government data on net migration, population growth and demographics. You can also talk to real-estate agents and other local experts to get their insights on the market.
6. The Sin Of Investing In Slumping Areas
While the overall trend in Australian house prices may be positive, it is important to recognise areas deviating from this trend. Despite the nationwide upward movement, certain regions still experience stagnant growth or even declines in property values.
Investing in a slumping area might seem tempting due to lower initial costs, but it presents several problems. While lower mortgage payments may attract homebuyers, they risk facing losses during resale. Investors, too, may find it tough to earn good rental returns or see property value appreciation.
Avoiding slumping areas when purchasing a house is important for the following reasons:
- Decreased property value: Homes in these areas might not sell at a profit later.
- Reduced rental income: Investors might earn less from properties here than in more attractive areas.
- Higher vacancy risks: Finding tenants can be challenging, possibly leading to reduced rents or gaps in rental income streams.
- Limited amenities: Fewer facilities and services can lower the overall appeal, negatively affecting property value and potential rent.
When assessing a location, look beyond its current performance and project its potential trajectory over five, 10 or even 20 years. Making a decision based on the present state alone can be shortsighted. Better investment opportunities may be available, and you should focus on finding a property in a location that is more likely to appreciate in value over time.
7. The Sin Of Not Running A Property Inspection
One often underestimated but critical misstep in pursuing the ideal property is skipping a comprehensive inspection. This oversight can have profound consequences for the quality and longevity of your investment.
Online listings and photographs can be tempting, but they rarely tell the whole story. Relying solely on these visual representations can lead to overlooking hidden problems or necessary repairs that may lurk beneath the surface.
A physical property inspection conducted by a qualified professional serves as a crucial safeguard against unforeseen issues.
Here’s why you should do an inspection:
- To identify hidden problems: A building inspection can uncover problems that you may not be able to see on your own, such as structural damage, plumbing leaks or electrical hazards.
- To protect yourself from unforeseen expenses: A property inspection can help you decide whether you are willing to take on the cost of any necessary repairs.
- To negotiate a better price: If the property inspection reveals any problems, you can use this information to negotiate a better price with the seller.
Overall, the property inspection can be a small price for the peace of mind of knowing that you are buying a sound property free of major defects.
Heavenly Locations Await
Don’t let these sins drag you down! Talk to our experts who stand ready to guide you away from the seven deadly property sins that lurk in the shadows, and towards the celestial beauty of your dream home.
Our specialised services cater to unique and complex situations, guiding you through every step of the process. Call us on 1300 889 743 or complete our free online assessment form.