Asking smart questions about a property will help you make an offer plus it could give you clues as to what the owner may negotiate on.
Find out about:
- why the property is being sold?
- how quickly does the owner want to settle?
- are there any known issues with the land or buildings?
- have any renovations or alterations been done and are they consented/permitted?
- get and understanding of the local area too – proximity to schools, shopping, transport etc
- what have other similar properties in the area sold for?
Certain classes of property require special care
Apartments
Banks prefer to limit the amount they’ll lend to 80% of the apartment’s value sometimes less depending on its size and location.
Leasehold
This is a special class of property where you own the building (or a portion of it) but not the land it sits on. Banks typically lend no more than 50% of the property value in this instance. You’ll also pay ‘ground rent’ to the land owner in exchange for having your building sitting on their land.
