Previously, we’ve written about what you should look for when buying an investment property, but really, there is so much more to it than just looking at the property. You’ve got to take into account all the bureaucratic processes in addition to the physical aspects of your property.
It may seem like a lot, but as always, Allen Real Estate is here to help.
Hire a professional to do a building inspection and pest control.
Okay, this may actually fall under the ‘physical’ list of steps in buying your property, but it’s still important. Pest population is a significant point when considering the value of your investment property, and also a major player in the tenants’ satisfaction with their home. It’s really not something you want to try out some DIY on either, just fork out that little bit extra and get it checked out by the experts.
Don’t assume the Real Estate Agent is working for you.
They’re not. They’re working for their employer – the seller. Real Estate Agents make their money by buddying up and convincing you that they have your best interests at heart, when in actuality, their top priority is ensuring the best price for their seller. Now, we’re not advocating treating all Real Estate Agents as scum, but just remember to take a grain of salt with everything they say and don’t be afraid to point out any inconsistent points or question something that doesn’t seem right.
Check your finances.
Ensure you know exactly every penny you have to spend on your property, and how much you are willing to negotiate. It may be tough, but if the final price is just out of reach, it’s probably best to let it go.
Research conveyancing and legal costs.
This relates significantly to the point above, but is so important that it merits its own sub-heading. Make sure you do your own research into this. You’re going to need it done, and it will cost extra, so you want to be sure that the added cost doesn’t sneak up to bite you when you’re least expecting it.
If you’re taking out a mortgage on your investment property, check out your lender to see if you require mortgage insurance. In some cases, lenders won’t approve the loan unless you have deposit of [x]%, which varies from lender to lender or mortgage insurance. Don’t get stuck without one or the other, and chat to your lender to see what their policy is.
Do your homework.
It’s been said that the three things to keep in mind when purchasing property is location, location, location. We’d like to correct that to research, research, research. Be knowledgeable about your property. Know what’s selling around you, and for how much. Learn how to negotiate. And most importantly, click through Allen Real Estate’s website for top-notch advice on buying investment properties and all the added extras.