100 Tips to Buying a Property
1. Do your research
2. Listen to those who have achieved what you want to achieve
3. Don’t be afraid of making a mistake
4. Have financial buffers
5. Don’t listen to bbq chit chat about the latest hotspot
6. Your Uncle doesn’t have all the answers
7. Understand finance
8. Explore your loan options
9. How you will be impacted if interest rates rise
10. How will you be impacted if interest rates fall
11. What do you want to achieve in 2 years?
12. What do you want to achieve in 5-10 years?
13. What do you want to achieve in 10-20 years?
14. Don’t use the bank you have banked with since birth
15. Know the difference between Big Banks and smaller banks
16. Don’t be afraid to explore your options
17. Understand what it means to buy off-the-plan properties
18. What is a new house and land package?
19. Always question someone trying to sell you someone, especially if they’re selling you a property
20. If you’re buying an investment property, research your property manager
21. If you’re buying a home to live, where will you buy and how long do you want to stay there for?
22. Difference between fixed and variable interest rates
23. Difference between principal and interest and interest-only loan options
24. How long should I fix my home loan for?
25. What is a mortgage broker?
26. If you don’t know the answer to 25, start this list again
27. Don’t buy an investment property because you just happen to live in the same suburb
28. Consider investing in properties in different states
29. Understand stamp duty
30. Understand the basics of demand and supply
31. Ask yourself, why do property prices nationally keep on increasing as time goes by
32. Be fearful, but don’t let it cripple you
33. Be fearful, but use it constructively
34. Have a good team on your side
35. Find a good accountant
36. Find a good mortgage broker
37. Find a good financial planner
38. Find a good Buyers Agent
39. Find a good property manager
40. Respect your tenant – they are paying your mortgage
41. Be kind, each person is dealing with their own demons
42. Don’t buy the first property you see
43. Ask a real estate agent, how many written offers do you have on this property? (legally, they have to answer you truthfully!)
44. Budget
45. Learn how to save
46. Understand the power of an offset accountant
47. Understand the concept of compound interest (this is how banks make their money and keep you in debt)
48. Use a credit card out of necessity
49. Pay off your existing debts in a reasonable time-frame
50. Don’t take on debt you can’t handle
51. A credit card with $0 balance will still affect how much you borrow from a bank
52. Understand how a redraw facility works
53. Understand what it means to split a loan
54. Inspect the property in person, if you can
55. Get a building and pest inspection completed and ask questions if you don’t understand it
56. Understand Lenders Mortgage Insurance
57. Why do you pay Lenders Mortgage Insurance if you are borrowing more than 80% of the cost of a property?
58. Lenders Mortgage Insurance protects the lender, not the buyer
59. Educate yourself – read books
60. Don’t be afraid to ask for help
61. Understand vacancy rates
62. Understand Time on Market
63. Understand the demographic of the area you want to buy in
64. Don’t be afraid to ask stupid questions
65. Ask your bank to give you a better deal
66. Understand equity
67. Understand the difference between equity and usable equity
68. Understand the difference between positive and negative cash flow
69. What is negative gearing?
70. What is the First Home Owners Grant?
71. What is the First Home Loan Deposit Scheme?
72. What is the Single Parent Scheme?
73. What is the Family Home Guarantee
74. When should I put down a 5%, 10% or 20% deposit?
75. Focus on the solution, not the problem
76. What is a comparison rate?
77. What fees are associated with my loan?
78. Increase rental income in line with the market
79. What tax deductions can you claim on your property?
80. What is a Trust?
81. What is a company?
82. What is a sole proprietorship?
83. If you use a broker, ask him how many lenders are on his panel?
84. What is a bank?
85. What is a non-bank lender?
86. What is an authorised deposit taking institution?
87. Understand numbers, if not, find someone who does
88. Listen to property investment podcasts
89. Listen to a multitude of opinions, but make up your own mind
90. The impact of land supply on capital growth
91. What is capital growth?
92. What is capital gains tax?
93. How can you minimise capital gains tax?
94. Consider using a Buyers Agent – they may cost you upwards of $10,000, but well worth if you can buy the right property
95. Just because one bank refused to give you finance, doesn’t mean they will all refuse to give you finance
96. Use a mortgage broker who takes the time to understand you and your goals
97. Enjoy the journey – buying property can be fun
98. Explore using different lenders
99. Not all lenders are the same
100. BE HAPPY!
