Buying a luxury property is an exceptional experience – but as with buying other types of homes, it’s not without its pitfalls. Follow my 5 tips to take the stress out of shopping for luxury real estate.
Go window shopping
Attend as many open homes as you can for luxury properties in your preferred suburbs. This serves two purposes: first, you can see what kind of properties are available, what the pricepoints are like and how much competition is in the market.
Second, you can also get really clear on what you do and you don’t want. Take a notepad with you and make a list of the features that stand out to you in each home, and you’ll start to notice patterns.
My tip: Use your observations to build your checklist of “must haves”.
Know your budget at the very beginning
Updating your household budget, taking stock of your debts and loans and understanding exactly how much money you have to shop with is the essential first step when buying a luxury property.
There’s no point in looking at homes in the $4-5m price range, if your actual budget is closer to $3m. You also need to consider additional costs like stamp duty, and you may need to restructure your debts to set yourself up with the most suitable funding.
My tip: Take the hassle and guesswork out of this process by engaging an experienced finance broker to do this for you.
Get clear on your bottom line
Knowing your budget is one thing, but having a clear line in the sand about the absolute most you are willing and able to spend is another.
Buying real estate is rarely straightforward – often our emotions enter the picture when we fall in love with a property, and we can see ourselves and our loved ones living there. When emotions take over, facts and reason usually take a back seat – which is when we can get into trouble.
My tip: Before you even begin browsing the real estate classifieds online, set a firm top budget and commit to not going over it.
Don’t be won over
Luxury properties are often advertised with slick marketing campaigns including brochures, videos and photography that sells an incredible lifestyle. While this is great for inspiration and imagining how you could live in the home, it’s also all designed to appeal to your emotions.
My tip: Remember, there are plenty more fish in the sea. If you don’t get this one, there will be more homes – so don’t get too attached to the dream being sold.
Be kind to local real estate agents
In the luxury property market, sellers can be very private and often don’t want to list their properties publicly, inviting lookyloos into their homes.
This is one of many reasons why luxury homes are often sold privately or off-market – meaning you need to be in the know and connected with local luxury real estate agents.
My tip: Is your phone overflowing with agent contacts? If not, now is the time to start developing those relationships, so you can get access to the latest listings.
By Louisa Sanghera
About the Author
Louisa Sanghera is an award-winning mortgage broker and director at Zippy Financial. Louisa founded Zippy with the goal of helping clients grow their wealth through smart property and business financing. With four decades of experience in finance, Louisa utilises her expertise, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
