The Ark Team have analysed the key areas to consider when purchasing an investment property and how to stress less at auctions.
To compliment this, they will be a hosting a special seminar on 'How to Purchase Property?' which will cover the important research you need to undertake, how to get the best loan and understanding what it will cost you.
|With interest rates at a 20 years low, activity in the property market has increased significantly over the past few months. Last weekend we witnessed record clearance rates in Sydney, with over 80% of the listed auctions selling. In Brisbane, the rate was 65%, which is nearly double the clearance rate this time last year.|
It is important in times like these to go back to the fundamentals and basics of property and not get caught up in the emotion and media.
We are running a seminar on 'What to consider when buying a property?' and it will cover off the following;
- What is the critical research you need to undertake? and how do you do it?
- How do you find the right property for you?
- Should you buy a home or investment and what is the difference?
- What will a property cost you?
- How to stress less at an Auction?
- The different tax consequences - including buying in super
As an example of some of the content we will cover at the seminar, here are 5 tips on what you need to consider when buying a property;
Is it a home or investment?
This is the first decision you need to make. Although the purchase might initially be a home and then an investment later it is very rare you find the perfect investment and home in one. You need to understand what your preference is - are you making a lifestyle decision or a financial one? This will help you when you are analysing the property.
What can you afford as opposed to what the banks will give you?
Yes it is very important to get an approval from the bank about how much you can borrow but it is more important to understand what you can afford. Just because the bank will give you $1million, doesn't mean you can afford that. You need to analyse your cash flow and understand what the cost of the property will be. When calculating the cost of a home, you need to take into account the rent you might be paying.
Have you done your research?
When we say research, it doesn't just mean the location, amenities and property specifics. You need to make sure you complete your building and strata research to understand if there are any inherent problems in the building such as water leaks, poor strata management etc. You also need to get your solicitor to review the contracts to understand the property in real detail.
What structure do you purchase it in?
There are several options when purchasing a property - joint names, family trust, super and individually. Each option has pros and cons, and it is dependent on your situation. In some cases, it might be a combination of the above to get the right outcome. The issues you need to consider are tax, estate planning, asset protection and flexibility.
Are you attending Auctions?
This can be a very nerve wrecking and stressful time for any purchaser. The key with auctions is to be realistic and be prepared. When you buy at an auction, you need to exchange and pay the deposit on the day of the auction if you are the successful bidder. This means you waive your cooling off period - so there is no going back. This means you need to be prepared well before the auction day. This includes having your solicitor review the contracts, have your building/strata reports completed and have you deposit ready to go. The second part is to be realistic - have your price that you are willing to go up to and if you don't get it then there will be another one. It is disappointing, but unfortunately that is the way auctions operate. Your buying strategy doesn't really matter if someone else is prepared to pay more than what you are.
We hope you can join us for the seminar on Wednesday the 14th of August from 6pm.
Click here to regsiter.
The Ark Team