Thinking of buying a house or unit? What should you look for? Firstly, is the price right? 

Step 1

You can check the prices of houses or units in the area by going to a Real Estate Agent and getting a summary of recent sales in the area or surrounding streets. Alternatively, you can go to www.rpdata.com.au and obtain an individual property report. These are about $40.00 and provides vital information on the price the owner bought the property. Plus it gives you the recent sales in the strata plan or street. You need this information to ascertain the right price to offer for the property. 

Step 2

For a house. Get a building and pest inspection. For a unit, you will need a strata report.

What is the importance of the building and pest report? It will identify building problems and possible white ant infestation. For example, water leaks on roofs and leakages around showers are major problems that need fixing. These can lead to mould and damage to walls and tiles. If these problems are present you can weigh up the costs and decide not to sign the Contract of Sale. Otherwise, you could negotiate a price with the owner to take into account the costs of the renovations.

A strata report is essential to see the state of the Strata or Owners Corporation. Is the strata in deficit or credit? If it is in deficit, and upcoming strata fees won't cover it. It is likely a special levy may be raised to cover it. This is what you have to look out for, that the levy fees may rise when buying a unit. Or capital works like a retaining wall is needed. If there is no money in the capital fund it has to come from somewhere and that usually means a "special levy".