When buying property, get yourself into a position to actually make an offer, sign a contract immediately and obtain finance. Too often we see good deals slip away because buyer's haven't done things in the correct order, or worse, deliberately held off on getting themselves organised because they don't want to spend the time or money doing so before they have a deal. Here's a few real life scenarios.
Company/Trust/Purchasing Entity not setup
It costs money to set these things up, so rather than spend the money upfront, plenty of people wait to source the deal before arranging the entity. This is not ideal, particularly in QLD where 'and/or nominee' on a contract can result in a second round of stamp duty being payable if you run with the nominee.
We are all in the market for a good deal. Good deals get snapped up quick. It may only take 1 to 2 days to get an entity registered, but this can be too late.
Some like to run the gauntlet and put the proposed entity on a contract before it is setup. The problem here is when the contract gets signed, accepted and dated before the entity has been finalised. Just speak to your accountant about the consequences!
JV Agreements
Some people are looking to buy in a Joint Venture, or JV, which can be a great way to get started, or to make the most of someone else's strengths. It can also slow things down though. Also, JV's work well when you are making money and everyone has the same thinking caps on, but all too often this can change.
You need to draft a plan of attack with your JV partner BEFORE you start looking at property. This is so you aren't wasting your time looking at deals that aren't suitable for the entire team. This should also allow you to make quick decisions.
Arrange a legally binding agreement that can be referred to if there are any conflicts. There are certain things a JV Agreement should include - Rob Balanda's "Joint Venture's Made Simple" is a great place to start. Contac the Reno Kings on 1300 550 656 to order your copy.
Another good suggestion is to have a lead contact and decision maker. If you have formed an agreement then this should be possible. Worst case scenario, have a 'get out clause' on the contract that you can utilise if your JV partners aren't in agreement.
Finance
It is recommended you have an in depth discussion with your bank or finance broker before you enter the property game or go to make your next purchase. You don't necessarily need to obtain pre-approval (though this is highly recommended if you are going to auction), but you do need to know your limit, the timeframes associated with getting finance and the documents you require. Too many times people can afford a deal, but can't get the finance in a timely manner because they haven't got the required documents on hand (such as tax returns).
Your A-Team
Have your A-Team ready before you start looking. These are your conveyancer, your accountant, building and pest people, town planner, surveyor, engineer, etc. The list goes on. You need people on the ready so you can get quick answers as you need them.
Research
Lastly, do some research before you start looking and concentrate on a small area. This is to ensure you research it thoroughly without spreading your resources too far, and so you can recognise a bargain as soon as it pops up.
Make Investigate Property Part of your A-Team
It is a buyer's market and things appear to be on the up. Now is the time to get into the market! To find out how Investigate Property can help you find your next deal click here.
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