Why patience is important when buying property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why patience is important when buying.

I often find buyers want to purchase as soon as possible.

You’ve made the decision, and you want it now.

Which is totally fine and understandable.

However, I would recommend that rushing isn’t the best idea.

Rushing is basically taking the first thing that comes along.

We are generally talking about alot of money here.

From hundreds of thousands to millions of dollars.

Sometimes you are lucky as a buyer and the perfect property comes up straight away.

Sometimes it takes a few weeks.

And sometimes a few months.

From my experience, it will eventually show itself.

Patience is important during this search timeframe.

Particularly if it takes longer than you had hoped.

I do understand often times there are time pressures from expiring rental leases.

Upsizing or downsizing from a property sale.

Or even continuing the investment journey.

My main tip would be to create an initial plan.

Then amend the plan as you go.

There will likely be one or two really important points which you should try and stick too.

I often find buyers goals change as the search continues and the market shows what properties are really worth.

Don’t get deflated.

Your property is around the corner, it just might have a few turns.”

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Why it’s better to initially find out about the property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why it’s often better to initially find out about the property.

Than research the property.

In many instances I find it’s so easy to get caught up in the excitement of a property.

Looking at the potential.

The aesthetics.

The styling and location.

But what is often overlooked is if the property can even be purchased.

Because if you can’t purchase it, then it becomes an exercise in creativity which will end in disappointment.

If you are a buyer and want to buy a property.

Then fundamentally the success is in the buying.

This then comes down to the price you pay etc…

In regards to this.

It’s often a time consuming process to research.

It’s better to initially see if someone has made an offer.

Or even if the vendor is willing to negotiate.

Or sell before the auction.

Or the property may be under contract.

Or to realise the property you really like is well over your budget.

It can get disappointing when someone else has purchased the property you invested hours and hours into.”

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Why having a property in a great condition increases it’s value

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why having a property in a great condition increases it’s value.

Picture this, two properties.

One is rundown and requires work.

The second is totally renovated and sparkles.

The first one will require a variety of trades to bring the property up to a modern standard.

The second will require no work at all and is ready to move into.

Which one do you think will achieve a superior price?

Not only will the totally renovated one achieve a superior price.

But I would predict the return on the spending would be greater.

Than the actual spend.

For example if it costs $50,000 to renovate to a nice standard.

I believe in many instances the perception will be above $70,000+.

I guess it’s because buyers would rather have certainty than uncertainty.

Alot of buyers don’t have the time and desire to go through the hassle.

Most buyers would pay for that certainty.

Which is what makes renovations so interesting.”

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The steps which occur when you buy property in Australia

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about the steps which occur when you buy property in Australia.

Many buyers start in the middle of the buying process.

My recommendation would be to start with your finance before you even start looking at properties.

Once you have a clear understanding of your numbers.

You can start to research various markets which may suite your needs.

These will obviously be dependent on whether you will be investing or living in the property.

When you actually have a few markets you are keen on.

You can finally start to look at properties.

Some key points are not to get too emotional about a specific property, if possible.

The more offers you make, the better in my opinion.

They will give you feedback and an understanding about the property you otherwise would not have had.

When you negotiate a property.

It would be wise to understand local market sales.

And what the property is actually worth.

If you can understand the current market value.

You are in a much better position to determine whether the offer you want to make is good or bad.

Once the negotiation has been successfully achieved.

You will usually sign the contract to exchange and pay a nominal deposit to get the property off the market for a period of time.

Usually 5-10 days, to complex further due diligence.

Your solicitor/conveyancer will usually review the contract during this period of time.

In a house you will get a pest and building inspection and in a strata complex a strata report.

Your mortgage broker/bank will usually organise an unconditional approval and ensure the valuation on the property is correct.

Assuming all these things go well.

You will pay the balance of 5% or 10% to exchange unconditionally on the property.

Then enter into the settlement period, which is usually upwards of 30 or 40 days.
When settlement occurs, your finance will come through depending on the LVR you were able to achieve with your lender.

And you will potentially pay some more deposit depending on this LVR.

Stamp duty or transfer duty will also be payable to the government.

Hopefully you’ve got a slightly better understanding of the steps invalided in buying a property in Australia.”

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Why multiple options are good when investing

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about, why multiple options are good when investing.

What I mean by multiple options are ways to add value to the property.

If you buy a unit, you will have a few ways to add value to the property.

Whereas if you buy a house you will have more ways.

Namely because you have the land and can change the structure of the house.

Or get an approval and potentially even change the land i.e. subdivision.

Or even add an extra house i.e. granny flat.

Whereas the unit is relatively fixed.

However, internally it can be certainly changed.

It’s these options that can add value to properties in any market in my opinion.

Renovating, developing, subdividing etc…

In the unit you may reconfigure the layout and add an extra bedroom and bathroom.

This can certainly add value.

In the house you may extend and build another level or even knock down rebuild.

It’s these extra options which make houses very enticing.

However, the price point isn’t always achievable in premier locations.

Making the unit an attractive option.

Whether house or unit, try understand the options you have with the property.”

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