BUYERS CHECKLIST
- Shop around for a mortgage – there is more to consider than the interest rate. Redraw facilities and the ability to make extra payments can save money
- Research details of recent sales results in your Resort and suburb of choice
- Find an Agent based in the local area, or better still on-site at the resort you wish to purchase in as they will know the resort and the market best
- Inspect a number of properties to compare them and decide which one you really like
- Ensure you receive details of the returns on this property for the past 12 months
- Ensure you receive information on the additional charges involved in owning this property e.g. body corporate, rates, furniture packages, insurance etc
- Make sure you have chosen a solicitor in QLD to act on your behalf.
- Check with your bank with regards to availability of funds – a standard deposit is 10% of the purchase price
CHECKLIST FOR NEW INVESTORS
- YOUR PERSONAL HOME LOAN - If you have a home loan on an owner-occupied home, ensure that it is set up and structured to make investing more efficient. As such you will want your home loan to be flexible enough to make additional repayments which can easily be drawn back in the event that you need extra funds to support your property, and it needs to be a loan structure where the debt is quarantined from any subsequent investment debt you may have.
- YOUR PERSONAL BUDGETS - Regardless of how big your portfolio becomes and how financially secure you are, paying attention to how you earn and spend your money always remains important. Once you begin to invest, you may have to meet unexpected expenses – new hot water services, longer periods of vacancy, rising interest rates. It is during this time that you will experience the most financial stress, and if you are used to managing your money and know exactly where it goes, making the required adjustments will be easier. Sit down and prepare a complete budget, and identify those areas where you can make changes if the need arises. Then, be sure to track your money as you spend it and adjust your spending at those times when you go over budget.
- PREPARE FOR ACCOUNTING - While you may previously have prepared your own tax returns, or had a small tax agent do this for you at a low cost, accounting when you have property becomes more complex and requires a specialist accountant. Not all accountants have the necessary skills to assist you with your property claims, so before you begin search for a good accountant. Prepare a list of questions and shop around a little until you find one who seems like they have the capacity to assist.