Before Buying - Things to keep ready

Viewing 6 posts - 1 through 6 (of 6 total)

PropertInvestor
Participant
@propertinvestor
Join Date: 2010
Post Count: 35
February 28, 2010 - 10:30 am
G'Day !
What are the things one should keep ready before buying property. I have plans to buy in early May 2010. I am working to arrange following
1. Deposit/Stamp duty amount
2. Conveyancer
3. Building and Pest
4. Pre-Approved loan
Do I need any thing else ?
YoungInvestor
Participant
@younginvestor
Join Date: 2003
Post Count: 377
February 28, 2010 - 10:46 am
If you intend to buy at auction, make sure you take your cheque book along!
Also, you need your structure ready to go – Will you buy in a personal name or a trust? If individual, joint or individual?
PropertInvestor
Participant
@propertinvestor
Join Date: 2010
Post Count: 35
February 28, 2010 - 10:51 am
Personal name or Trust – I am yet to decide this. Need to understand pros and cons of both. But an individual in both case's.
Ryan McLean
Participant
@ryan-mclean
Join Date: 2010
Post Count: 547
March 9, 2010 - 2:24 pm
Cons of trust – Harder to get lending, and more complicated when it comes to tax return
Pros of trust – There are so many pros. The asset protection is amazing and second to none. I would never invest without a trust. If someone sues you without a trust you are effed, if someone sues you and you have a trust you lose a lot less (sometimes nothing at all).
Looks like you have everything pretty covered. Now you just need to find a property
Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away
Ryan McLean | On Property
http://onproperty.com.au
Email Me
PropertInvestor
Participant
@propertinvestor
Join Date: 2010
Post Count: 35
March 9, 2010 - 8:42 pm
Thanks Ryan.
Finalizing few things. I am close to buy my first.
ryan mclean wrote:
Cons of trust – Harder to get lending, and more complicated when it comes to tax return Pros of trust – There are so many pros. The asset protection is amazing and second to none. I would never invest without a trust. If someone sues you without a trust you are effed, if someone sues you and you have a trust you lose a lot less (sometimes nothing at all). Looks like you have everything pretty covered. Now you just need to find a property Ryan McLean http://CashFlowInvestor.com.au Positive Cash Flow Properties Are Just A Click Away
miike
Participant
@miike
Join Date: 2008
Post Count: 111
March 9, 2010 - 9:21 pm
Some basic's for ya…
Make a decision on the strategy for the property.
i.e. Is it an investment or a home.
There are pro's and con's for each type of structure and can be costly depending on your decision. i.e. Trusts, in your name, etc…
I also recommend having a checklist of things to look out for. There can be many hidden issues with properties and unless you are looking for them you will not know the true cost until you take ownership. Checklists should consist of the small things to look out for, the idea at the end of this is to work out a cost benefit analysis of the property and if it is a sound financial decision.
You wouldn't buy a sport membership if you found out later that if required further costs in order to get into the stadiums.
Strategy is everything in investments, regardless of the market, shares, currency, warrant, bonds, property, options, etc…
Every strategy has pro's and con's, but essentially includes the following:
(1) Research/Analysis
(2) Specific Cost Benefit Analysis
(3) Entry
(4) Analysis
(5) Exit
Make sure you have these completed before entering, you wouldn't go buying shares blindly on the decision of a friends hearsay, so have a secure way of exiting if the shit hits the fan.
Some examples of property strategies are:
(1) Buy and Hold
(2) Buy off Plan, Rent
(3) Buy, Rent
(4) Flipping
(5) Buy, Renovate, Rent
(6) Buy, Renovate, Live in it
etc….
Do your own research and discuss with a financial planner if this decision is right for you….I'm not a financial planner!
Cheers,
Miike