Your step by step guide to purchasing an investment property

Location is very important and can be a great indicator of the level of capital growth that your property can achieve over time.

When researching the location, your primary consideration should be the proximity to amenities such as public transport, schools, hospitals and shops.

Then pay attention to the suburb’s vacancy rates, sales history and comparable sales.

Your next step is to consider the size of the land and property, the condition and number of rooms.

Once you have sorted out your finances and obtained approval for the loan, follow these simple steps to finalise your deal.

1.   Arrange all the inspections: Building, pest, electrical and strata, as well as land or property surveys.

2.   If buying through private treaty, make an offer (allow for negotiation and flexibility)

3.   If the offer is accepted, you can make the offer official by having a sales summary or contract prepared by a solicitor. This should include the date of the offer, property address, price offer, deposit amount, balance to be paid, financial details, special conditions and settlement date. Agents are legally obliged to present the offer to the vendor.

4.   If purchasing through an auction, make sure to have pre-approval for finance and the deposit ready.

5.   If the offer is accepted, you will receive the sales contract and asked to pay the deposit

6.   Contracts will be exchanged via the conveyancers/solicitors.

7.   Get your solicitor to check all the contracts before signing.

8.   Once the contracts are signed, there will be a 5 day cooling off period

9.   Once the cooling off period has ended, you are legally bound to proceed with the purchase (unless there is a special condition in the contract)

10. Now is the time to secure funds for stamp-duty, organize building insurance

11. Connect all the utilities using our partner MovingHub- a one stop shop for all utility connection

12. On settlement day, you or your representatives will meet with the vendors to swap the cheque with the title of ownership and the keys to the property

13.  Once settlement takes place, the deposit will be released to the lender and the sale is finalized

14.  Your solicitor will then notify the government of the change of ownership

15.  Manage your investment properties using RealRenta and save thousands of dollars per year in management costs.

Need an investment property loan?

Contact us @ propertyloans@realrenta.com  and we will arrange for our trusted finance partner to contact you for a no obligation chat.


Marlene Liontis
Tuesday, 10 December 2019

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