A strong investment process checks affordability, the property and the contract before making a commitment.
Protect the finance position
Conditional pre-approval is not final funding. Discuss an express finance condition with your conveyancer where available rather than assuming you should remove it to strengthen an offer. Cooling-off rights are separate; auctions and same-day post-auction exchanges have none.
Assess evidence rather than stereotypes
An apartment near a university is not guaranteed high yield, and an inner-city period home is not guaranteed growth. Compare dated sales and leased results, condition, competing supply, strata and realistic operating expenses. Obtain appropriate independent inspections.
Plan cash flow and tax
Allow for vacancy, finance, rates, insurance, repairs, management, applicable land tax and selling costs. Deductibility depends on circumstances and loan use, and future tax changes may affect the plan. Obtain qualified credit, legal and tax advice rather than treating an agent’s view as a complete investment assessment.
