Buying Tips

  1. Speak with your financier to arrange the best loan to suit your needs.
  2. Prepare a short list of preferred areas that suit your lifestyle. Keep in mind affordability and accommodation requirements.
  3. Research sales in those preferred areas using The Herald Sun or The Age Price Guide & recent sales on realestate.com.au. Inspect every property in your preferred area so you have a feel for the price. Attend all auctions in the area.
  4. Develop a relationship with a Balmaine Real Estate agent specialising in your preferred area. The agent will be able to offer additional advice and also alert you to new listings before they reach the media.
  5. When you find a property that suits your requirements, ask your agent to send a copy of the sale contract to your solicitor or conveyancer.
  6. We recommend that you arrange a building & pest inspection to make you aware of any major defects and pest concerns e.g: white ants, termites.
  7. Following your solicitor’s or conveyancer’s advice on the sale contract and taking into consideration the building and pest reports, you are now able to make an informed decision to proceed with an offer on the property through the agent.
  8. If you are bidding at an auction, we recommend you read the Consumer Affairs Victoria “Buying at auction” section before you attend the auction. You can find the guide at http://www.consumer.vic.gov.au.
  9. Once negotiations have been finalised, you will be required to sign the sale contract and pay a 10% deposit. Your deposit will be held in trust in an interest bearing account until settlement. The vendor will sign their sale contract and the solicitor/conveyancer or agent will exchange the contracts.
  10. On settlement day, your solicitor or conveyancer may request that you have a pre-settlement inspection before settlement takes place. This is to ensure that the property is in the same condition as when you last inspected it and that all the inclusions are as per the contract you signed.

Investing Tips

Why Invest in Property?

In our opinion, well located, actively managed investment property is one of the best investments for everyday investors. With an attractive combination of solid capital growth, regular income and generous tax breaks, it’s a simple investment that most people can understand. With a little effort and knowhow, you can convert a modest deposit into a sizeable nest egg.

The Power of Leverage

The basic principle of leverage is borrowing money to buy an appreciating asset. If the value of the asset increases faster than the amount you repay, your wealth increases. Leverage is a way to increase your gains by investing with borrowed funds. The reason why property is so attractive to investors is because it has better leverage than almost all other types of investments. Most lenders prefer financing property as opposed to other investments because it’s less risky, it’s tangible, prices don’t fluctuate wildly, and it’s easy to value.

Adding Value

Property is one of the few investments that you can potentially add value to quite easily. There are literally hundreds of ways to add value to a property, many of which only cost a small amount of money. You can paint, build a barbecue, put in some paving, renovate the kitchen, landscape the garden, or simply tidy the garden up a little. The list is almost endless.

Accessing Your Profits

You don’t have to sell your property to access your profit, you can simply refinance. You can get a new valuation of the property and borrow more funds using the increased equity as security.

Exceptional Tax Advantages

Property offers excellent tax advantages through negative gearing, which allows you to offset any losses against your other income. Always get advice from an accountant to maximise the tax benefits of your property investments. The amount that you might pay a tax expert should be recouped many times over by the amount of tax that they save you.