When should you commit to purchasing a property?  When you can afford to! I’m not just talking about the financial commitment; I’m also talking about the time and emotional commitment. Yes, that’s right, ‘emotional’ commitment. 

How do you prepare yourself for this journey? 

  1. Be financially prepared  
  2. Be aware  
  3. Be patient  
  4. Be flexible  
  5. Be diligent  

Be Prepared:

For each property transaction, you will need to be financially prepared; by that I mean get your finances in order before you choose a property. This means obtaining pre-approval from your financial lending institution. There is nothing more stressful than signing a contract and waiting for a bank to provide the approval. Be aware of the extra costs and include them in your budget.  

Avoid unpleasant surprises such as:

  1. Mortgage Insurance
  2. Stamp Duty  
  3. Legal Costs  
  4. Insurances  
  5. Depreciation Schedules 
  6. Holding costs  
  7. Accounting Fees 
  8. Ongoing costs  

If you are expecting to cover the holding costs from a tax refund, then make sure that you can handle the month to month holding costs while you wait for your end of tax year pay day. Alternatively, talk to your accountant about a tax variation, which could help you with your monthly budget.  

Be Patient: 

if you are intending on buying rental properties unless they are rented before you settle, be patient and find the best tenant. It is so important to avoid the costs associated with poor tenant selection.  

Be Flexible:

Do your due diligence and don’t be rushed into a buying decision. Also, try to control your emotional attachment to the property, and focus on the financial performance instead. 

Be a long-term investor:

The property market rarely moves quickly. REMEMBER; slow and steady wins the race. We spend hours finding the perfect property, taking into account, the market and your needs so we can match up your long-term financial goals.  

Most importantly, never stick your neck out too far that you can’t afford to hold onto your properties.