Expert strategies on how to buy the perfect property quickly before Easter

Lloyd Edge, Director of Aus Property Professionals

It’s not surprising that Aussies are wondering what the property markets will look like.

Australia and New Zealand has stated that house price growth will slow over the next year to 6% after median house prices boomed 21.9% over the year to September.

Lloyd Edge, Director of Aus Property Professionals and author of Positively Geared, believes that house prices won’t decrease unless APRA intervenes and tightens the availability of credit.

“With our economy and the fact that our borders are open, this will also drive demand. Buyers will secure a home before the end of the first quarter to beat the competition.”

“People often get overwhelmed by the steps required to purchase a property, so below are my top tips to help them on this journey, so they can meet this deadline comfortably.”

Know your why and create an investment strategy

Why should you have a goal?

You need a reason and vehicle that motivates you to stick to your investment strategy.

Take a moment to pinpoint your ‘big picture lifestyle goals’ – is it financial freedom, working for yourself, semi-retirement, overseas holidays, helping underprivileged communities?

Once you’ve crystallised this, you can turn that dream into a concrete number and begin working on your strategy. Next, you will determine your where, when and what to buy.

Your goal will inform this decision, for example you might buy a blue-chip property for long-term growth or you will build a duplex for cashflow.

Secure finance

A lot of people are under the impression that you need millions of dollars and a huge borrowing capacity to invest, but this is far from the truth! Getting a mortgage is not always a simple thing to do, so I highly recommend consulting a mortgage broker.

They assess financial positions and explain how banks will see it, explain the types of interest rates, ascertain what loans will suit your goals and strategy, determine the best bank and outline any changes needed before applying for your home loan of choice.

You need to show lenders who you are, what area you’re buying in, what type of property you’re buying, your intent behind the purchase and how much you need to borrow.

I always recommend having a strong buffer for costs, as it’s easy to underestimate and saving enough just to cover your deposit will only lead to financial strife!

Hire the dream team

To finance and purchase properties, and meet a multitude of legal and practical needs involved on time and within budget, you need to build up a dream team of professionals.

They are buyer’s agents, a mortgage broker, a financial planner, an accountant, a solicitor or conveyancer, a building and pest inspector, a quantity surveyor and an insurer.

Find an investment grade property

Less than 5% of properties are investment grade, so how do you find one in a region that is ripe for growth? You will find the property trifecta of instant equity, cashflow and growth.

To achieve this, shortlist properties based on the following factors.

  • Good regional growth drivers
  • Presence of several different industries
  • Approved increased government spending in the area
  • Transport links
  • Low local unemployment
  • Low vacancy rates
  • Proximity to education and childcare facilities

If the property meets your budget requirements, aligns with your strategy and fits this criteria, I encourage you to invest or purchase. Searching can take time, so be patient.

From signing to settling

Once you have successfully found the dream property, placed a good bid and have been successfully accepted, contracts must be signed between you and the vendor.

Take note of any special conditions, disclosures and insurance in your Contract of Sale.

It’s also important to know what can be negotiated in a Contract of Sale and this includes the cooling-off period, the settlement period, deposit amount and fittings & fixtures.

On the settlement day, all representatives of the interested parties, including any financiers, should communicate effectively with each other to exchange legal documents.

Landlord’s toolkit

If you’ve bought an investment property, it’s important to understand your responsibilities as a landlord to avoid costly mistakes, maximise your returns and protect your investment.

The six steps of becoming a landlord are buying a property, understanding the legislation set out by the state or territory level of government, appointing a property manager.

Don’t just go with the cheapest or biggest agency, finding quality tenants.

Screen them by running a credit check, assessing their employment and rental history & contacting their references, signing the lease and maintaining the property.

It’s important to determine who pays for repairs and maintenance.