You don’t fix your car yourself do you? Unless of course you’re that way inclined. Or self diagnose medical problems (apart from the odd Google search of course). We expect we’ll get professional advice and services. Given that buying and selling property is one of the biggest financial (and emotional) decisions you’ll make, you should make the effort and invest the time to get the right advice.
There’s been a rush of people wanting to fix their home loans – understandably so. Fixed rates are at the moment cheaper than some variable rates. Haley Bellamy from Smartmove has provided us with a few pointers (Thanks Haley!).
“Often when dealing with property transactions people wonder whether they can save a few dollars here and there. My advice is to try to save in other areas and make sure you are always getting the best advice in all areas. When making a property transaction the risks involved are possibly substantial so it can cost you more than it can save you in the long run if you don’t have the right professionals guiding you through.
So what advice do you need?
“Work with a real estate agent who has a great track record – any of the Cunningham’s agents would be happy to discuss their past results with you. They are professionals and even if you negotiate as part of your job they are experienced in this particular type of transaction so will be best placed to get you the top result when selling your property. If you are buying they are known for their professionalism and will help guide you through the process to give you the best chance of securing the property.”
“Make sure you work with a trusted lawyer or conveyancer. I would suggest working with someone who has been recommended to you rather than just letting your fingers do the walking and using someone you have looked up online. Make sure they specialise in property transactions so you don’t experience a clunky and unnecessarily stressful process. Let them arrange a strata inspection in need rather than saving a nominal amount and looking at the books yourself – you risk missing something that the lawyer could have advised you about that may have changed the amount you were willing to pay or even changed whether you were willing to proceed or not.”
“When getting a building and pest inspection if there is something you don’t understand or want a better feel for the likely long term implications just pick up the phone. The inspector will usually be more than happy to talk to you and can explain in layman’s terms what you need to know.”
“Work with a mortgage broker you trust – let them do all the follow up work with the bank for you and if they are a good broker they will have relationships with the banks that enable them to address any issues that come up for you in a way you wouldn’t be able to yourself. They can of course also help you understand the different options available to you. This means getting the best deal and solution for your needs but also helping you take different lenders policies into account if one bank or another mightn’t be suitable if your situation is unique for whatever reason.”
“If buying investment property or using equity in your current property to buy investments of any kind make sure you have a good accountant. There are some areas they may be able to advice you on obtaining deductions you may otherwise have missed yourself. On the same token, having a financial planner can help you achieve your long term goals and protect yourself from unnecessary risk. It is often best to use a planner who is independent and charges a fee for service rather than just relying on commissions as this may mean they aren’t interested in property related strategies.”
“Don’t try to become an overnight expert and risk making mistakes you could regret later – surround yourself with the right people and you can focus on what is important to you.”
Happy house hunting!
