Read Time: 5 minutes
It can often be described as one of the most daunting and horrific processes that some people will go through. And let us not beat around the bush here, buying property can be incredibly scary. It’s a large sum of money that one will invest - often saved over years and years. So a lot goes into the purchase of a property.
Milk Chocolate have been purchasing property for over 10 years now - personally and more recently for our clients. We have identified diligent and fail proof structures that enable us to make informed decisions every time. Below are 5 tips to make a successful property purchase in Australia.
You need to surround yourself with a tried and tested team to guide you through the purchasing process. This would include your Buyers Agent, Accountant, Solicitor, Mortgage Broker/Bank Manager and Builder (if required).
So important. You need to identify your budget upfront and stick to it. Work with your team to identify what this is, make sure you’re comfortable with the serviceability of any loans and don’t sway from this number. Leave the emotion out of it and stick to that magic number. If you miss out, that can be a good thing, it means you are being diligent with your budget and not overextending yourself. There will always be a property for you within your budget.
Understand the market and property values. It’s very important to have clear and realistic expectations. You’ll be amazed by the efficiencies this will provide on the purchase journey. Your focus will be on realistic and achievable markets - allowing you a greater chance to purchase sooner rather than later.
Whether you’re using a buyers agent or not, you need to know the property market like the back of your hand. Data is king, research from a macro to a micro level - it’s so important to have your finger on the pulse at all times. An understanding of growth markets, looking at historical trends, infrastructure planning, vacancy rates, demand vs. supply and auction clearance rates to name a few - are all key to a successful purchase. The same rule always applies, whether it’s an investment property or your new home - you always make your money on the purchase, not the sale.
Know Your Goals
It sounds simple, but often it’s easily overlooked. You need to know what you’re looking for. It’s well and good going in with an open mind, but you’ll often be on the hunt for months - even years because you never had clear goals. Set simple and achievable goals and simplify the process by locking in the key wants for your purchase. If it’s a home, determine how you want to live in the property and the lifestyle you want to live. For investment properties, is it a property that’s negatively geared to offset your high taxable income? Or is it a positive cash flow property that supplements an income? Or are you looking to try and make a quick capital gain by adding value to a property?
These are all very important factors for a successful property purchase in Australia.
Milk Chocolate was founded seven years ago by Richie Ragel and Michael Cleary, to purchase residential and commercial property in Australia on behalf of our clients, looking for a home or investment property. To see how we can help you get in touch here.
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