Before purchasing a property we need to undertake a number of steps. Property purchase checklist will help you with some of these steps. To simplify these steps we have put together a property purchase checklist. This checklist provides details on the logic that enables us to pick great properties.
Step one – Plan your purchase
Property purchase checklist starts with this first step includes a number of sub steps that help us understand our situation better. This step also provides us with specific toolkit for property purchase.
Discuss the property we are happy to buy.
Is it a one bedroom, a two bedroom? Is it a house or a townhouse? This step provides us with necessary “box” of acceptable properties that enables us to narrow our search. What suburbs we will be targeting is yet another aspect we will look into.
Understand our borrowing capacity and how much can we afford.
Understand our borrowing capacity and how much can we afford. Sometimes it is also about how much debt we can comfortably take on. There is no point in buying a property if we are going to lose sleep over it. Also keep in mind some of the costs!
Start property search
This is initial exploration phase. First we need to get a detailed profile of the property we can afford and we are willing to buy. Including:
- Type of property and land size
- Suburb shortlist
- Cash flow and yield analysis
The next step is actually searching for property. This involves review of available properties and shortlisting the ones we like. Using the Property purchase checklist is handy in this step.
Putting an offer on a property
This is not simply hit or miss game. We need to make sure the offers are as beneficial to us as possible. Meaning we put clauses that we thing would benefit us into the real estate contract.
Doing a building and pest inspection. This is another important step in property purchase journey. Property purchase checklist is handy in this instance as well. This step gives us additional peace of mind in regards to the structure of the building.
Negotiation and the purchase
Should any items appear during the building inspection, we negotiate. We either negotiate to get any reasonable fixes and maintenance applied. Otherwise we negotiate to get an additional discount on the property.
Once the property settles we move onto next steps. These include depreciation reports, finding a tenant, getting council and water on-board and many others.
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