I Have A Secret I Want To Share
By Vincent Power

One of the most important things to do when you purchase a property is to make sure you can get the money to buy it! Some would say that it is the most important thing and I am not going to disagree.

Now if you have a bag full of cash under the bed or maybe a money tree in the back yard don’t bother reading any further. You don’t need any help. For those of us who aren’t so lucky let me show you something about finance that you may have overlooked in the past.

I’m sure all of you have heard of Pre Approvals. Like me, I’m sure that you know how important they are when it comes to making sure you can borrow. I certainly encourage my clients to get a Pre Approval first; just to be sure nothing is lurking in the shadows that I can’t see. A Pre Approval isn’t hard to get and it will give you peace of mind when it comes to negotiating the purchase price on that perfect investment property.

Once we have a Pre Approval in place and you have the Bank’s Approval Letter in your hot little hand there is one more thing that you need to do. This is the secret I wanted to share with you. Are you ready? BUY

Yes, that’s the secret. You have to buy a property. The whole point of a Pre Approval is not the satisfaction of knowing the Bank will give you money. There is no point in sitting on the couch smiling at your family and knowing the Bank will give you money. You have to do something to get the money. You have to buy. Remember that you can’t be a part of a growing property market by just knowing you can be a part of it. You have to actually be a part of it.

I know, I know, it takes time to find the right property. You work hard all week and on the weekends despite your best intentions, life just keeps getting in the way. But you know something? That’s no excuse. The Pre Approval won’t wait forever and neither will the market.  You have to take action to overcome your lack of time.
Why don’t you try these tips:

• Set aside specific times each day to focus on your property search. It doesn’t matter when as long as it is the same time each day. You should be awake at this time too!
• Narrow down exactly what you are looking for first.
• Decide on the Suburb
• Decide on the type of property you are looking for.
• Be specific

Only once you have done this are you ready to look. Can you see how it is easier to look for a renovated 2 bedroom /1 bathroom unit with car space in St Kilda East than it is to find an investment property somewhere? Which of these are you more likely to find?

If this doesn’t help I have one more trick for you.

Employ someone to search for you. Buyers Advocates can do all of this work for you. They will look for the property you want, as well as helping you understand what the market is doing, what the latest sales in the area have been, etc.

One of the best things I like about Buyers Advocates is that they often have access to properties that haven’t been listed yet. If your Buyers Advocate is as good as mine, you will soon be seeing well located properties at below market prices and this all happens without doing much at all.

Yes there will be a cost but in the overall scheme of things it will be minimal. Remember if you haven’t got the time to look for a property, you can buy the time from someone else.

If you thought a Pre Approval was the start of the hard work, find a Buyers Advocate to take out the sweat and worry. That’s what I did and still do today.

This article was written by Vincent Power, Investment Mortgage Strategist at Investors Direct™. an award winning Mortgage Company specialized in strategies and finance for residential property investors since 2001.  Investors Direct is the finalists in the 2008 Australian Mortgage Award for Brokerage of the Year (Over 12 Staff Category) & Best Customer Service from an Individual Office.