Overview
The process of purchasing property in Australia can be emotionally taxing and time consuming; however, it is actually quite straight forward and methodical once you understand it.
The ‘Action Steps’ section of this website will aim to address each part of the property purchasing process; however, it won't exactly do this in chronological order (but I have tried my hardest….) therefore to assist you as much as possible I have created a 'legend' below which outlines which ‘Action Step’ is relevant to each part of the property purchasing process. Noting that this is just a general overview, there are of course nuances in each step of the process.
For reference, I have excluded the use of a buyer’s agent in the below - please refer to ‘Step 2 - Building Your Team’ if you want to know more about the role of buyer’s agent and whether or not you should use one in your circumstances.
Property Purchasing Process
Step 1: Understand the basics of property investing
Step 2: Talk to a mortgage broker to confirm your borrowing capacity and get a pre-approval in place
Step 3: Talk to an accountant to understand what structure you should purchase in and the tax implications of each
Step 4: Understand your strategy and create your brief for this property purchase
Step 5: Conduct your suburb research and create a shortlist of suburbs to focus on
Step 6: Reach out to a conveyancer to understand the nuances / requirements of purchasing in the state you are focusing on
Step 7: Reach out to a property manager to understand the market, good / bad pockets, what owner occupiers and tenants look for
Step 8: Start sourcing on-market and off-market properties to purchase
Step 9: Conduct due diligence on the property you have identified
Step 10: Perform your Comparative Market Analysis to understand the property's value
Step 11: If you are interested in the property, conduct your pre-purchase inspection
Step 12: Start negotiating with the sales agent and submit an offer for the property
Step 13: If your offer is accepted, send the contract to your conveyancer for review and ask when to get building insurance in place
Step 14: Once the contract of sale is signed, send it to your mortgage broker to get your finance approval
Step 15: Book your building and pest inspection, once you have the results - summarise them and discuss with the inspector
Step 16: Once the building and pest condition and finance condition are satisfied, the contract is unconditional
Step 17: Sign on formally with a property manager
Step 18: Organise your pre-settlement inspection
Step 19: Work with your conveyancer and mortgage broker to proceed towards settlement
Step 20: After settlement, manage your portfolio and optimise your tax outcomes
Corresponding ‘Action Step’
Introduction, Step 1 - Understanding the Fundamentals
Step 2 - Building Your Team
Step 2 - Building Your Team
Step 3 - Strategy Building
Step 4 - Suburb Selection
Step 2 - Building Your Team
Step 2 - Building Your Team
Step 5 - Property Sourcing and Selection
Step 5 - Property Sourcing and Selection
Step 6 - Valuing and Inspecting Properties
Step 6 - Valuing and Inspecting Properties
Step 7 - Making Offers and Negotiating
Step 8 - Post-Signing and Settlement
Step 8 - Post-Signing and Settlement
Step 8 - Post-Signing and Settlement
Step 8 - Post-Signing and Settlement
Step 8 - Post-Signing and Settlement
Step 8 - Post-Signing and Settlement
Step 8 - Post-Signing and Settlement
Step 9 - Portfolio Management and Exit Options