Time is of the essence when seeking investment funding in the midst of a competitive market, says specialist mortgage broker Emmanuel Marios.
Buyers must seek conditional pre-approved finance in advance to secure their property investment of choice in a competitive market or risk losing out on the sale. As specialist mortgage brokers based in Tasmania, we’re seeing properties sell within 12-14 days on market, without even a ‘For Sale’ sign out front - and it doesn’t look like changing any time soon. It’s the same in many parts of Australia, as more and more investors point their interest at residential real estate for its capital growth and cashflow potential. It’s essential to stay one step ahead if you want to build your portfolio, with the right broker behind you an important part of your strategy.
*Consider your own situation prior to seeking finance
Look at why you’re getting finance in the first place. Are you seeking an investment that’s going to provide you with immediate cashflow (through rental returns) or something expected to achieve strong capital growth, building equity to help fund your next investment? Are you currently renting or do you have a mortgage? If you’ve got your own home - or other residential investments, for that matter - do you have equity available to help fund a deposit for your next purchase? Gather together all your supporting evidence for your mortgage broker, including payslips, tax returns and employee records.
*Find a specialist broker who’ll meet on your terms
Today’s technology offers much in the way of flexibility for those seeking finance - so make sure you find a broker who’s willing to leverage what’s available. Gone are the days of fronting up to one of the Big 4 banks during business hours. Specialist broking firms such as ours meet you out of hours, reaching out through apps including Skype to put us all in the one room at a time that suits your needs. It minimises wasted time in the buying process as you wait for availability to open up in your busy working lives - and means you’re that bit closer to conditional pre-approved finance.
*Look for a pre-purchase property report as standard
The more you know about your intended property of purchase, the better. Specialist brokers will provide you with a detailed report listing previous sales and rental history, which gives you tangible evidence of what’s happened in the past. Additionally, they’ll offer you an estimated valuation to give you an idea of what the property is worth in today’s market. This is essential information to help guide your purchasing decisions, especially if your buying strategy includes looking for properties that are under-market value.
*Loan protection a must to safeguard yourself
Don’t even consider moving forward without a loan protection plan in place. As a 100% tax deduction when you’ve got an investment property, this will mean you’re looked after if you lose your job or suffer a workplace injury. For those investors who already have their own home, the overheads on this combined with your investment mean there’s a lot you need to cover. It’s not worth being complacent. While some lenders will insist you have lenders mortgage insurance as non-negotiable (depending on your age, deposit amount and time in your current job), you can also take it out as an optional extra, as a further safeguard again.
*Seek out a broker who’s committed to your success
When you start dealing with a broker, don’t just take their word for it when they say what they can do - back it up with firm evidence. Do your own due diligence by looking at their website, checking them out on social media and reading their Google reviews. Ask for testimonials, talk to your local real estate agents and get in touch with your friends. You want to find someone as proactive and invested in your success as YOU are! This means finding people who are experts in their fields, accredited by a national organisation (including Mortgage Brokers of Australia Association) and with access to a wide network of lenders.
*Pre-approval in place: make your offer with confidence
Once your conditional pre-approval is in place, you’ll be able to get out into the marketplace and secure your property investment of choice. Rather than approaching real estate agents saying that you want to buy at some point in the future, you’re signalling to them that you’re committed and ready to go. In most cases, you’ll then have a 30 day settlement to finalise your finance and make the property your own. The speed with which you’ve moved until this point is what will keep you in the running with properties selling left, right and centre - and that next sale will have your name on it.
Call Emmanuel and the team today on 1300980362 for a API exclusive finance strategy review.
Original article: http://www.apimagazine.com.au/property-investment/preapproved-finance-a-must-in-competitive-market