When you’re considering buying an investment property, I always advise clients to consider their options, do some research and decide which path to take. But, in this market if you take this approach and treat it like a leisurely Sunday drive, the property you’ve decided on is likely to have been sold.
In reality, right now, buying an investment property is a bit like a race around the track with Mario Andretti at the wheel.
Properties are selling fast. Especially good properties with a high rental yield in locations that have low rental vacancy.
In no way do we ever want you to make a fast decision that isn’t well thought out and that you’re not comfortable with. However, we do want you successfully buy a property though.
What this means is that you need to be prepared. You need to know:
- the goal that you’re aiming to achieve
- your budget
- your location/s
- the yield you’re aiming for
It’s also good to have your finance ready to go.
As soon as you have the goal and clarity around the details, we can formulate a brief and find properties to match.
Once we find that property or a couple of properties for you to choose from, that’s when things speed up and the race begins. We need to lodge an Expression of Interest and pay usually a $1000 refundable fee to take the property off the market before someone else buys it. You then have a cooling off period where you get some breathing space to make sure you’re 100% committed to the purchase.
It seems like a whole lot of pressure to take action now. And it is. But it’s not unnecessary pressure because the competition is real.
Good properties are selling fast. Pre-auction sales are the highest they’ve been in over a decade. Land value, particularly in Queensland, is rising at a faster rate than rent yield, so the better price you can buy for, the better off you’ll be.
Our advice is to do your homework, get clarity on what you want to achieve, speak to your mortgage broker and financial planner. We’d love to talk through your investing ideas with you too.
If you know exactly what you’re looking for, it will be so much easier to say yes when the right property comes along that ticks all the boxes.
Book a time to meet by following this link.