Questions to Ask Before You Buy

Before you go ahead and make an offer to buy a property, there are a few important questions you should ask your real estate agent. Asking the right questions will not only arm you with essential information about the property it can give you a distinct advantage over your competition. 

So, what questions should you ask? 

The best questions are those which the average buyer wouldn’t normally know the answers to. Prior to purchase, enquiring about the practical considerations which can impact greatly on a property’s selling price and its potential resale value is important. The main thing to remember is to not let emotion take over and overvalue the property. You don’t want to be left with a property that is not suitable for your long-term needs and you certainly don’t want to inherit other people’s problems.

Here are the top five questions recommended by the Real Estate Buyers Agent Association of Australia (REBAA): 

1. How did you price this house?
2. How long has this property been on the market?
3. When was the last time the property was sold?
4. What are the reasons for selling?
5. What improvements have been made to the house and have they been approved?

How to Reduce Your Mortgage Painlessly 

Here some straightforward tips to help bring your mortgage down: 

Re-evaluate Your Interest Rate 

Check if your home loan interest rate is still competitive. Lenders consistently alter their interest rates and loan terms to win business, so it’s well worth doing your research. Work with your broker to see if there is a better deal available to you.

Change Your Repayment Frequency 

Switching from monthly to fortnightly repayments is an effective way to increase the amount you pay off your loan each year. Instead of paying 12 monthly repayments you end up paying 26 fortnightly repayments. At the end of the year, you have an extra month of injection into the principal. If you can stick with this strategy you will be able to skim four years off the top of a 25-year loan. 

Invest a Lump Sum 

If you’re about to receive a tax return, inheritance or healthy bonus from work, use the funds to take a significant chunk out of the principal amount of your mortgage. The more cash you put into your mortgage, the quicker you will repay your loan. If you’re worried about possibly needing the money for an emergency down the track, check with your bank, as you can usually release the equity from your home in the future.