Have you ever wanted to purchase an investment property but you just had no idea how? Well, you’re in luck because we’re about to outline the five-step process of selecting, buying and managing a property.
An investment property is a solid financial move for your future. Whether it’s to boost your retirement plan, retire early or set your family up, an investment property can be a step in the right direction.
You’re not just investing in property; you’re investing in a financial plan. Investing in real estate is a long-term plan, so you need to take the time to talk to your partner or your finance broker about your plan. By setting clear goals and timelines, you’ll have a better chance of achieving them.
Your journey to financial freedom begins here.
Step 1: Finance and Pre-approvals
It is important to consider your short and long-term goals and review your finances.
Check your credit rating – Start budgeting to ensure you can balance your income and expenses to plan for greater upcoming expenses. You should also consider reducing your credit card limit and minimizing your debt.
Find out if you qualify for a bank loan – Discover your potential borrowing power by speaking to your bank, credit union, broker or financial adviser. Otherwise, contact an OAK Lending consultant for obligation-free advice on your pre-approval status on 1300 006 625 or at info@oaklending.com.au. Pre-approval comes from your mortgage broker or directly through your lender.
Step 2: Select and Reserve your Property
Explore and research the properties available, then compare and choose the one that suits you.
Step 3: Review the Contract
Your solicitor or conveyancer will review the contract for sale independently and make sure you understand what you’re signing up to. They will also negotiate with the seller’s legal representative on contract conditions, making the process of documentation and settling easier.
Step 4: Sign the Contract for Sale
If you want to go ahead with the purchase, you’ll need to return the signed contract and pay the balance of the deposit.
Step 5: The Contract Exchange
Once you’ve exchanged signed contracts with the seller, you’ve secured the property. You’ll need to pay the balance of the 10% deposit. You won’t need to pay the balance of the purchase price until the property is settled.
Maximising your Investment
After the settlement, it’s time to take ownership and move in or sign up your first tenant.
For off-plan purchases, settled properties come with a 90-day warranty maintenance period. For any defect issues identified within the first 90-days after the handover, these are submitted by the purchaser to the Builder on a warranty claim form.
For more information, you can email our managing director via mike@starcentralmag.com to start your investment journey.