This is my 20c worth of Tips:
1. Traders Hot Tip: Have good relationship with the professional on your team: you’re Solicitor, Accountant, Mortgage broker and Valuer especially. Also it is important to have good relationship with a good property manager who knows the areas you target. This property manager can advice you about achievable rents and the current rental demeaned and level for that particular area and type of property. The occasion lunch a bottle of wine when you receive extra attention can go long way.
2. Always, like the team at http://www.WeBuyProperty.co.nz buy houses which you can add value too like: Under rented properties, sub-dividable property, straight titling block of flats, Reno, a property which you can add additional room or Dwelling for better cash flow.
Having the opportunity to add significant value to your property will Fast track your property goals, will add value in any market with out relying on future capital growth, if subdivided property this will minimize risk by having the option to sell one part of the property to reduce debt, over all the add value/equity could help with obtaining more finance or topping up the existing mortgages.
3. Always check the property file at the local council and LIM, look at floor planes and compeer.
4. Always get you solicitor to check the title / Deed before you go unconditional.
5. If you are buying from a motivated vendor and you want to get the property at a reasonable discount, I find that Best approach is to do your research first and then putt a cash unconditional offer.
6. Treat agents with respect: agent are your best sores for deals as a property finder I spend 10 hours a day talking to agent and vendors and sourcing the web. A good agent would understand your buying criteria and would not waist your time presenting you with deals that doesn’t stack up.A good agent will research the market for you and call vendor who had “old listings” – expire or stale listing. Bottom line you want the agent to take you as seriously Investor how he will cal FIRST when a good deal is available.
7. Be Pre approve have your finance sorted so you can act quickly when a good deal comes available.
8. Farm an area: concentrate your effort and research in 1-3 areas Max. Don’t over spread yourself, only when you know an area well and followed sells and for for sells for a while you will know that value and recognize a bargain at a drop of a hat.
9. Make your money when you buy: Paying to much for a property is mistake a lot of uneducated investor do, if you paid tom ouch for a property and just hoping for capital gain in the future then you are actually just playing catch-up in the first few years while the market is reaching and then passing the point of current market value.– If you buy well from the start your journey for achieving your goals and property success will be shorter.
10. Ask why are they selling and when do they need to settle this will give you some indication of motivation?
11. For Investment property:Location Location Location Goes Hand in Hand with Research Research Research!
12. Keep your LVR (Loan to Value Ratio) lower then 80% -> aim to have LVR of 65% or Lower.
13. Many people give up when success is just around the corner ~ Set you goals and have a plan to reach them -> Never give up and enjoy the journey
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Hadar is a full time Property Investor and Trader, Specialising in Do-ups & Add value, Multiple income properties, High Yielding, Commercial, Equity and "Move Forward" Properties. Hadar is co-owner and Sales & Marketing Mangers at www.PropertyGenie.co.nz. Owner of the Private House Buyers companies www.WeBuyProperty.co.nz & www.PropertyBuyersAuckland.co.nz/ Find Hadar on Google+