Interested in buying your first investment property?
Check out nine essential tips for buying an investment property, that will help guide you through the process:
1. Determine you borrowing
Compare lenders to find the most favourable terms for your loan. Consider a preapproved home loan to enhance your credibility and increase your negotiating power.
2. Research the property market
Research the market value of property in the areas you are considering by attending auctions, talking to experts, and searching the internet.
3. Inspecting a property
Professional building and pest inspectors can identify physical problems while conveyancers can check the title of the property for existing mortgages, land boundaries and more.
4. Review the contract
Your contract might contain unacceptable terms that restrict you from building, extending or even more. A conveyancer can identify and have these terms amended before you sign.
5. Decide of a price to offer
Weigh up your goals. Securing a low sale price could help increase your financial return in the short term, but you may decide to spend a bit more if you can see the potential for long-term gains.
6. Make an offer
Be ready to lock it in as soon as you can. Having your deposit when you’re ready to make an offer will ensure that you can close the deal and request that the property is taken off the market immediately.
If your offer is accepted, you conveyancer will represent your interests with the vendor, ensuring that the final contract is legally binding and fair, with conditions that benefit your investment.
8. Sign your mortgage documents
A mortgage is the financial agreement between you and your lender that allows you to purchase your property. Sign this to secure the deal.
A conveyancer will settle the legal elements of your sale, navigating the final obstacles and liaising with your financial institution. This means less stress and more time to consider your investment strategy.