Episode 5 of The First Home Buyers Show – Buying Process

The speedy recap of the first home buyers show about the process of buying a property

Episode 5 of The First Home Buyers Show – Buying process

First of all, number one thing you cannot miss is actually understand what your goal is what are you trying to achieve and then understand what are you strategies?

Because if you don’t know your strategy and you come up with it midway through the process, you could be looking in the wrong suburb or buy the wrong property, and then understand that we get to #setit exactly what you need to have available to you.

The deposit available to you and then have a mortgage broker go through and do your borrowing capacity so you understand what your purchase price is, then it’s really important that if you are ready, you get a pre approval.

Now, a pre-approval typically last for three months. This’s a cursory look via lender over your situation.

It is not a formal approval, and when you get to, find the property the valuer is sent out from the bank, and it’s only then that you get a formal approval and a formal agreement that the lender will give you the money so they will require it at that stage new pay slips are needed as well, so make sure you don’t change your job between your pre-approval and when you actually find property.

Now the other thing is understand what? The first home buyer grants and concessions are and maybe even if you are eligible for the first home loan deposit scheme now, as a mortgage broker, we make sure that we can facilitate all that paperwork for you. But if you don’t know what, you will find someone who can assist you to do it because you don’t want to miss out on those concessions and grants.

And the other thing is, then you get the fun part of actually sourcing the property and finding it. But wait, it’s not about going around the corner and finding the property around the corner. Remember, this is a battle you’re after the best possible conquest so that you can create wealth for yourself the future so it’s about understanding the strategy suburb match so, for instance, if renovation is part of the strategy that you have to push your rent up when you move out and rent the property and push it equity up then you have to make sure that the suburb has capacity to do that now. I demonstrated that in the full first home buyer show. So jump over there and check it out because there are reports that allow you to do that.

And then also, you need to understand what the typical type of property is because you don’t want to have an a-typical property, because when it comes time to rent it or sell it, you’re not going to have the biggest segment of the market that’s after you so this is easy information you can find once again, I demonstrate the suburb, select a software that we’ve developed to assist our clients being able to find that kind of information. But it’s just stuff that you can go on research online yourself with census.

You can go to different research hubs, and we’ll share that with your where you can find all the research for free now the other thing is, just choose 3 to 5 suburbs, get to know them intimately and get to understand that market and then make sure you concentrate on the typical property and set alerts up. So then into Domain, Real Estate, or, if you want about clients when you’ve got pre approval.

We actually paid $150 a month for RPdata Corelogic for you so you can get in and not just to their searches. But you can also create valuation documents on any property in Australia.

Check out what your neighbour paid. But it’s always important to understand that you want to be able to know what properties are available when and getting an alert for when the three bedroom typical, probably on 600-800 square metres in the suburb you are after comes on the market.

You can jump in really quickly now. It’s always important when you’re doing inspections. Used an inspection check list, I demonstrated, one that we give to you in our first time buyers course, but you can create this yourself. Just make sure that you’re aware of what’s going on with the property.

Track it through its campaign and see what it sells for as well, and it gives you a feel for the market and then store that information staple the pretty picture the sale document that the agent gives you to the top of, that inspection so that you know exactly what that property was sold for and what it looked at.

And I miss that time and time again and gone back and had a look at properties that have resold in a year or two later and potentially have had a renovation done just to check out what the people have made on that property but it’s really good way for you to track a property and all the properties you are looking at, because you’re probably going to be looking at 5 to 10 every single Saturday.

Now the inspections are important, i’ve also shared with you maybe a spreadsheet of all the past sells you could do a bit of analysis on working out what renovated and unrenovated properties are selling for, what the typical brick property versus the timber property is selling for get in idea of what the price is that you should be buying at, because when you actually find the property, then you’re going to have to negotiate and knowing where to start that it’s really important with comparable sales but when you find the property there’s a few things that you can’t forget.

Pest and building inspection. Do not forget this. You do not want to find out years later that you have termites. And they’re eating through all the timber and the property is not habitable.

You want to make sure that you have a conveyancer or solicitor review the contract before you actually put in an offer and they can actually help you put in clauses as well, so things that they made change might be reducing the penalty.

Interest in case you settle late. They might reduce the amount of deposit you need to you need to include.

That might increase the settlement. Timeframe. You know, there’s so many things that could be included here, but absolute no brainers are making sure you have subject to pest and building inspection’s “that are acceptable to you”

And subject to a finance clause “that is acceptable to you being approved” and you need 7-14 working days to achieve that.

Because what happens is once you have that contract in principle signed, you need to then get that contract with your updated pay slips to your mortgage broker so that we can then process that and get a formal approval and it can take 3,4, 5 or 6 days for the valuer to get through a property then there, right at the report, then they have the supervisor review it. Then they get it to the bank and then the bank that assessor checks it out and says yes.

So you need least seven working days to make sure that you have enough time so that you are settling the property without a loan because, as you will check out in the full episode of the fhb show Scott from Hello Haus, shared with us that there’s actually an opportunity to actually lose you entire deposit.

That you work so hard and getting you don’t want that to happen. So getting those clauses right, it’s important.

And then there’s the negotiation. As I said Scott joined us from Hello Haus and shared with some of the experiences that he’s having in the negotiating down prices for some of his clients, it’s a no brainer. Getting a professional negotiator on your side.

I really encourage you to get into the first house buyer Facebook group, have a chat to Scott and some of the other professionals we have in there, write down your questions. But, you know being able to negotiate and maybe cutting $10,000, $20,000, $30,000, $40,000 off the property price this is money for jam, and it’s something you shouldn’t miss and then let’s go through and make sure that there’s one other thing that you should include and that is making sure the property is insured.

The bank’s going to tell you what the value of the property is, and you have to get insurance set up before the settlement date and for settlement the day before or the morning of.

You need to do pre settlement, inspection, make sure the dishwasher is still a miele and hasn’t replaced with a dishlex make sure that all the things that you believe the property should have in place are there there might be a tenant that is still there, that refusing to move out, which happened to a client of mine.

So you need to be doing that personal inspection before you know confidently that it’s time for you to hand over the money and 3 to 5 days out your solicitor or conveyancer. Will be asking you for a bank cheque for all the funds that you need to contribute.

There also be getting the funds on the day from the bank, and you need to make sure that you are prepared, are ready to put in those funds to complete the purchase.

So all of these things are part of the process that you need to know, making sure that you know exactly what to do when. Don’t go to auction without a pre approval.

Don’t buy, property without an inspection. And don’t just settle on the price that the agent is saying that the property is worth. Go in and negotiate.

There are so many things that you need to know when you’re purchasing or going through the process of buying, it can feel like a battle.

But, hey, we are here on your side. Answer any questions and make sure that you are always victorious.

Want to know more about how to get a deposit? Watch Episode 4 of The First Home Buyer Show -Getting a Deposit

You’ll catch us every Wednesday If you’d like to type REMIND on the Facebook FHB Show episode, we’ll send you a copy of The Guide to FHB Grants.

https://www.investorschoice.com.au/FHBSEp5

If you would like to make a time to have a discussion about your borrowing capacity or how much you need in savings then click here https://investorschoice.com.au/bookings and I will also get you access to my First Home Buyers Course (valued at $495) after you have had your call.

And remember to join tour community of First House Buyers Group and download the Show Notes from past episodes

Know the Buying Process PDF > https://investorschoice.com.au/buying-process/

Click here to see all the episodes > First Home Buyer Show Playlist