By Rich Harvey, CEO & Founder, propertybuyer.com.au
The decision to purchase property is a major one, there’s no doubt. There are all sorts of big numbers and commitments involved.
Yet the rewards can be substantial. As a property owner you join a historied cohort. The idea of achieving the Great Australian Dream or becoming a landlord has been an aspiration for generations.
Yet time and again we see people freeze up after they make the decisions to buy a home or investment. Many even get cold feet after one purchase and miss the opportunity to build upon their equity gains and achieve financial security.
So, what are the roadblocks preventing you from reaching your real estate goals and how do you break through them?
Planning
Setting out a plan right from the start is essential.
Before you even glance at a listing portal, you must first understand why you’re buying. Think long and hard about what needs will be fulfilled by the property you purchase.
Is it a home? What do you and your family want to see in the place you live?
If you’re buying an investment, look at what you want to achieve financially. Is it an early retirement? What does that look like? How will the property you purchase help you reach that goal?
Look at the resources you have available, both now and in the future. Think about what you earn and whether that might improve. Also, how will your financial commitments change as your family grows? Will there be more household costs to deal with?
Use all this information to map a blueprint and understand how your property purchase fits into the plan. It allows you to focus on “your why” and proceed with confidence.
I’ve been through this myself recently. I worked out what I wanted to achieve and how much I was able to invest. It’s kept me on track, and I've now bought two of the three properties on my goal sheet.
Making a plan that’s both honest and achievable can be challenging, but it’s key to helping you forge ahead.
Big dollars and finance
The decision to buy property can be confronting is you’re not accustomed to the money involved. Purchase prices are in the hundreds of thousands and real estate is the single biggest buying decision most Australians ever make.
At some stage it dawns on you just how big the numbers are, and that can cause you to freeze up… but it shouldn’t.
Firstly, get advice on what you can comfortably afford to invest in property. A mortgage broker or financial advisor can run through your numbers and ensure you won’t be put under stress by your commitments.
Secondly, remember that you’re not spending money on a disposable doodad that depreciates in value. This isn’t a holiday to the Maldives you’re buying!
No – property is a tangible asset that, if appropriately chosen, will increase in value over the long term. In the very worst-case scenario, you can always sell it to pay off the debt.
Of course, if you do hold on, your purchase price today will look miniscule in the long term, and the asset’s growing value will bring you ever closer to financial independence.
Time
Most buyers grossly underestimate the time commitment needed for the buying process. From researching potential options to the continuous stream of open home inspections, the effort is exhausting. Then you could attend a multitude of auctions only to be constantly pipped at the post.
It can be a soul zapping energy drain that, at any point, will seem like too much bother.
The solution is to draw on the support and guidance of a buyers’ advocate. They assist by ensuring you don’t waste valuable time unearthing unsuitable properties or attending unnecessary inspections.
Not only does that time saver deliver you more minutes for own work and family, but it also helps you avoid the inevitable mental exhausting which can halt your plans.
They do all the hard yards and, as professionals in their field, will achieve an outcome far better than you can imagine.
Processes and personalities
Property acquisition means dealing with a range of personalities and processes that can have non-property people pulling their hair out.
You will spend time talking to range of agents who all want you to commit to a purchase. You’ll be waiting on return phone calls and information and having to bat away the constant pressure to sign on the dotted line.
Then there are the legalities around the contract process from signing to settlement. You will be working with mortgage brokers and solicitors, and they’ll have a range of demands for information and decisions from you. Finance brings a lot of stress, particularly during the approval period.
The solution is, again, to have a buyers’ advocate on hand. They can help smooth the procedure by dealing directly with the agent from negotiation to settlement.
The buyers’ agent is also your experienced coach in the corner. They’ll help you work out what’s necessary around legal and finance. We also know what red flags to watch out for, so you remained fully informed about potential pitfalls and benefits.
Roadblocks are common and can cause people to give up on their real estate dreams. By having strategies in place and professional support on hand, you can clear these hurdles and be on a fast track to more success in your property deals.
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