Buying a property–whether for residential or commercial reasons—is one of the greatest investments. You need to research thoroughly and evaluate every minor detail to ensure you grab the best deal for your budget.

The overall process requires studying your needs and goals, the location, market trends, and so much more. So, if you’re all set to make a huge decision, start your research here!

1. Identify your needs

Before starting the property research, understand whether you want a family home, a vacation home, or an investment property.

For residential properties, consider more factors, such as property size and the number of rooms (bedrooms and washrooms).

For investment properties, besides the above, consider future appreciation, local rental market conditions, vacancy rate, occupancy rate, rental rate, and tenant profile.

2. Study the location

The property location is another crucial factor. Start by researching the neighbourhood. Check the proximity to amenities, including school, workplace, grocery store, hospital, bank, gym, gas stations, and car repair services.

Another important factor is transportation around the area, so find how far is the closest bus stop and the volume of public transport available from there.

You must also check the neighbourhood type and crime rate. If the area isn’t safe, it’s not a great investment both for residential and commercial purposes.

Lastly, research the growth of infrastructure. If the local council is working on infrastructure projects and developments, including commercial centres, public transport, and highways, the property value will significantly increase in the future. Thus, it’ll be a great investment!

Observe the historical data of property prices of your selected locations. Notice patterns and trends in price growth and decline. You can get detailed information on market trends from the Australian Bureau of Statistics.

Once you find some properties of your choice, check whether the property has a clear title. This implies that the seller must have the legal right to sell you the particular property. To find this, you must conduct an online house title search from a reputable website.

This will also tell you whether there are any disputes and encumbrances. This document helps you find whether the property is legally possessed or the seller has expired power of attorney.

You can also hire a legal advisor to help you study the title search and make better choices.

In addition, you must also enquire about any planning or zoning restrictions. These might impact your property usage later on and make renovations and new constructions difficult.

5. Assess the property value

Due to inflation, Australian residential dwellings’ total value has risen by $209.4 billion in the March quarter 2024 to $10,720.7 billion.

However, don’t blindly believe a seller’s quote on the property value. To get an accurate evaluation, check out similar properties in the same locality and research their recent sales value.

Besides that, consider your chosen property’s condition as well. Conduct a thorough inspection to look for hidden issues. These can lower the property’s value in the long run and add up to repair and renovation bills.

While you can inspect the property by yourself, it’s better to seek professional property inspectors to examine its structural integrity, electrical systems, plumbing, and possible pest issues. If the property is in a better condition than the rest, a higher value is expected.

6. Consider your finances

Before you buy the property or make an offer, consider certain financial aspects such as:

  • Deposit value
  • Mortgage value
  • Insurance
  • Property tax
  • Maintenance cost

Based on these values, understand what you can afford and what the property’s monthly payment can be.

If this is an investment property, compare your costs with potential rental income. Ensure that the property’s return on investment (ROI) is high. Alternatively, you can seek a financial advisor to get a clear idea about all financial aspects of your investment.  

7. Research the utilities for the locality

Make sure the locality has proper access to basic utilities, including electricity, gas, water, and internet. Without these, you will not only face inconveniences but also have to invest more to obtain these basic necessities.

Check in with other residents in the locality about the availability of basic utilities and whether there’s any issue about them. In that case, connect with utility providers and know if they plan to fix the problems soon.

Conclusion

Effective research and evaluation of properties require careful planning in every step. So, take your time to consider all of these important details and only then make your final call!