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A STEP BY STEP GUIDE TO BUYING YOUR INVESTMENT
PROPERTY
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Organise your deposit
A deposit can be organised with:
• savings,
• a deposit bond,
• equity in another property,
• funds in an SMSF, or
• family guarantee.
Have your loan preapproval in place
Knowing how much you have to spend gives
you the confidence to make a calculated offer
on your property of choice.
Choose the right property in the
right location
Research your chosen suburb by checking all
advertised listings in newspapers, the internet
and real estate agents. Make sure that you
know the price of recently sold comparable
properties and the area’s average rental yields.
Choose an investment property with your
head, not with your heart.
Sometimes investing in property in another
state is a better financial option. Keep
informed by reading reports on national
property updates and best performing
suburbs. Usually capital cities outperform
regional areas, however some coastal options
have also seen very good growth.
Make an offer
For properties sold by private treaty you will
need to make an offer to the listing real estate
agent. Obtain a copy of the contract for sale
and organise for your conveyancer/legal
representative to check it.
Properties being auctioned may be open to
offers prior to the auction date. If you buy at
auction you will usually be required to pay a
deposit of 10% on auction day. The contract
for an auctioned property is unconditional and
no cooling off period applies. If bidding at an
auction, make sure that your conveyancer/
legal representative has checked the contract
and organised pest and building inspections
before you bid.
Appoint a conveyancer/legal
representative
The contract for sale should be given to your
conveyancer for advice and checking. The
conveyancer will advise you of your cooling
off rights (vary from state to state). Once the
contract has been signed by both parties
and exchanged, the contracts are legally
binding. The contract will indicate when
the deposit will have to be paid. If pest and
building inspections have not been carried
out, it is advisable that they are ordered by the
conveyancer.
Final loan approval
We will organise loan documents for the
balance of the purchase price to be prepared
and signed by you.
Appoint a property manager
When loan approval is in place a property
manager should be appointed so that
tenants can move into the property as
soon as settlement has been effected. A
good property manager will source and
retain quality tenants, collect rent, conduct
inspections and organise repairs and
maintenance on your property. They will
provide you with a schedule at the end of the
financial year showing rental income, repairs
and maintenance and property management
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