When looking to buy property, it is imperative that you build a supportive team around you made up of people you trust. The right people will stand by you and provide qualified advice as you make some of the most important decisions of your life.
1. Mortgage Broker
A good mortgage broker will help you define your goals for your home ownership and beyond. They will focus on the big picture so you have correct lending structures in place to maximise your borrowings and savings. This will enable you to work out the most suitable loan product in line with your current needs and long-term goals. Some of the considerations your broker will discuss with you include:
ant decisions of your life. The following professionals will make your property journey less overwhelming:
a) Interest Only (IO) vs. Principal and Interest (P&I) – Is this your forever home? This will determine whether you choose an IO or a P&I repayment method
b) Suitable Features To Enable Savings – Determine what features you need so the interest charged has the same effect as paying down your loan and thereby paying more of the principal
c) Interest Rates on offer – The fact is that a loan offering the cheapest interest rate isn’t always the best. There can be a downside to a low-rate loan so make sure you have all bases covered with features such as an offset account or credit card access. Sometimes having a lower rate product, which does not have features which will save you 100’s of thousands in the long term and has a counter-intuitive result and can leave you out of pocket.
d) Loan to Value Ratio (LVR) – Lenders prefer lower LVRs as it reduces their risk. Consider how much of a deposit you have to contribute. You are likely to get a better interest rate option and the flexibility to go with IO or P&I with repayments if you can commit to low LVR
e) Forward thinking for future investment goals – Your broker will discuss with you how you may use your existing debt to invest in the future. Finally, your broker will help you to gather the right documentation and get a pre-approval organised from the optimal lender so you can go shopping!
2. Solicitor (Conveyancing)
Your solicitor for conveyancing will review contracts on your behalf before you commit to purchasing a property. This way you can determine the buying terms such as the deposit amount you will need to hand over to the agent, cooling off period, chattels being included with the purchase and settlement terms. The solicitor can also call out any downside with the property, whereby the contract covers items such as floods and future limitations to development. Your solicitor is also responsible for interacting with the seller’s solicitor and the bank to ensure that the settlement is booked on time and the legal ownership transfers are completed.
Conveyancing costs around $1,100 to $2,000 including GST and is recommended for all home buyers regardless of experience.
3. Building and Pest (B&P) Inspector / Strata Company Searches
Building and Pest Inspector
A B&P inspector is responsible for going through the property and identifying any concerns with the structure and issues that need attention. This includes bathroom leaks, broken windows, roofing etc. They will also let you know about any safety issues you must be aware of before making your purchase.
Pest inspection is also carried out as part of the B&P inspection. The goal for a pest inspection is to determine issues such as termites, ants or any other pest damage to the property.
B&P inspections cost $450 – $600 Inc. GST. They are not compulsory but have the potential to save you thousands of dollars in the long term.
Strata Report
A strata report covers details about the strata complex such as the sinking and admin funds. This money is required for the maintenance of the building and therefore must be substantial.
The strata report also covers the strata payments per unit in the block and makes note of whether any of them are in arrears. The key thing to also watch out for are strata report minutes from previous years – this will give you insights into whether or not there are any problem owners in the complex.
Strata reports cost from $250 to $400. Your solicitor may have B&P and strata contacts. However, if you feel more comfortable choosing your own, ask friends and family for recommendations on these
If you’re ready to kick off your journey PM myself.
About Us:
We have 8 years + experience in buying multiple properties starting with our home and then building a real estate portfolio.
Mona is a Chartered Accountant, and used to work for a Big 4 Accounting Firm in personal income taxes, so any advice you receive is tailored to your needs. Sana is a former IT Project Manager and we both used to work for an Australian investment bank before starting our own home loans business to assist others with their home purchase and wealth building through property.
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