The 7 Steps to becoming a Successful Property Investor – Step 5 The Purchase

The 7 Steps to becoming a Successful Property Investor – Step 5 The Purchase

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Step 5 is the most exciting step; it means you are moving forward! You have decided on your strategy, made a plan, you have done your research, decided on your purchase and now you are signing the contracts. You will need to have your legal representative go over the contract or contracts plural if you are buying a dual contract property and check all the clauses. If you are not an expert in this area I highly recommend that you DO get a solicitor to check out the contracts before signing them. You will need to add your own clauses, such as finance, building and pest, due diligence and any other clauses you might want put in.

You might need to have your builder organised and if doing a new build, the architect or building designer will need plans and specifications so that the builder can draw up a fixed price building contract. There is always a lot of paperwork and it is nice to have someone hold your hand through the purchase process.

This is where it gets real, you will need to have access to your deposits, apply for the First Home Owners Grant if applicable, sign bank applications, you will need to provide a lot of documents for finance here is an example of some of the documents needed;

Personal Identification
• Current Drivers Licence and or Current Passport (both is preferred)
• We may also need a Birth Certificate or Certificate of Citizenship
• Marriage Certificate

Income Details for Salaried Applicants
• 2 most recent pay slips – computerized with year to date and ABN of employer
• Last financial years payment summary (group certificate) only if bonuses or over time was paid
• We may need your current employment contract or employment agreement OR letter from employer stating rate of pay, length of service and current employment status

Income Details for Self Employed Applicants
• Two most recent years ATO Tax Returns and Tax Assessment Notices (both personal and business)
• Balance Sheets and detailed Profit and Loss Statements covering the most recent two years for the business
• Details of external liabilities (leases, hire purchase, overdrafts, company loans and/or guarantees)

Your Contribution (Deposit)
• Evidence of 5% genuine savings showing 3 months savings history
• 3 months worth of latest bank statements, savings accounts, term deposit statements or share certificates
• If additional funds are being put towards the purchase, evidence will be required as to where the funds are currently held, or if the funds are being gifted, a Statutory Declaration from the gifter will be required. Bank statement will be required to show the money

Financial Commitments
• Most recent 3 months worth of statements for any existing Home Loans – this must have your name and account number on it
• Latest 3 months statements of any personal loans/car loans – evidence confirming current monthly repayments
• Latest statements for all existing Credit Cards and Store Cards
• Estimate of current monthly lifestyle expenses
• Council Rates Notice for each property owned
Superannuation & Investments
• Latest Superannuation statements for all existing funds – old and new

• The latest 3 months worth of statements for any shares, managed funds, term deposits, plantations or other investment portfolios

Property Construction
• A fixed price building contract between the borrower and a licensed builder
• Plans of the new property that have been approved by the Local Council
• Detailed specifications and costings for the construction
• Evidence that construction is being undertaken or supervised by a registered and insured builder who takes full responsibility for the construction and is able to provide appropriate guarantees as required by the various State legislatures
• Details of insurance for builders risk

That’s a big list!

Once the loan is approved, you will need to provide a copy to your solicitor and satisfy the finance clause in the contract, going unconditional on the contract or exchanging the contract if you are located in NSW. If buying an existing property, you will need to organise a building and pest inspection, or soil test if building new.

The process from signing the contract to settlement will take anywhere from 21 days to 2 years if buying off the plan. It depends on the term in the contract.

Let the excitement begin!

The 7 Steps to becoming a Successful Property Investor – Step 2 Your Team

The 7 Steps to becoming a Successful Property Investor – Step 2 Your Team

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Why is having a team so important? Buying a property is a team sport, there are lots of people that need to be involved. You can’t play cricket as a single player, you need a team of speciality players like batsman, bowlers, wicket keepers, fielders and coaches. The captain of the cricket team is the leader, which in this case is YOU as the property investor.

The people you are going to need on your team are a Property Advisor / Strategist, Accountant, Mortgage Broker, Real Estate Agent, Buyers Agent, Financial Planner, Builder, Architect, Tradies, Solicitor, Conveyancer, Town planner, Property Manager …. and that’s just to name a few. Now you should be starting to get the idea, there are lots of people involved in your property investing journey. You need to set up the right team to achieve a successful outcome.

I will briefly cover off the main ones;

  • Property Advisor / Strategist is the person that can help you navigate your way through the property search and recommend properties that are going to suit your goals and needs. (Blue Wave Property Strategies can help out here)
  • Accountants are the people who will help you with tax related issues, set up investment structures such as companies and trusts, they can also look at cash flow too.
  • Mortgage or Finance Brokers should have a excellent understanding of the lenders and how to submit investment property deals and help with the bank selection. They are crucial in the big picture. (Blue Wave Property Strategies can help out here)
  • Real Estate Agents work for the property they are trying to sell. They are paid their commission from the seller. However, they are the chief negotiator between the buyer and the seller, usually doing up the contracts and getting both parties to agree on a final price.
  • Buyers Agents work for the buyer, they source the property that the client is looking for. They charge a fee or commission from the buyer for finding suitable property.
  • Financial Planners will make sure you have all your insurances such as life, income protection and trauma up to date, they also look at your whole portfolio with diversification in shares, managed funds and superannuation.
  • Builders build the property….. of course
  • Architect or Building Designer designs the property…. again pretty obvious
  • Solicitor or Conveyancing will give you legal advice around contracts and the property purchase. They will attend settlement on your behalf and do searches on the property to make sure you are buying the property  stated in the contract. (Very Important).
  • Town Planner or Certifier gives you advice, makes sure you can build the type of building you want on the particular block of land, signs off on the official approvals for the building to commence and reviews the plans drawn up by the architect or building designer.


Tradies, electricians, plumbers, carpenter, landscape gardeners, painters, concreters, fencers etc. All help in the building, renovations or maintenance of your investment property.

Always do you research on who you want on your team, in many cases cheaper is definitely not better, go with your gut, recommendations and people you have used and been happy with in the past. Make sure your team has your end goal in site and will do what they need to get you there!

At Blue Wave we can help you with a few of the crucial items you need like strategy, finance and finding you the perfect property and if we cant help with a task, we have great contacts we can recommend. Give us a call today at 5443 8773 or schedule your FREE Strategy Session below.

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