The Residential Property Investing Process Explained SImply
The Basics
“The power of investing in residential property comes from leveraging. When it comes to investing, you need to ensure the decision is based on the data and not emotion”
There are multiple types of residential property and locations investors can choose from.
While many investors start out with the intention of making it big in real estate, only a handful will ever get past their first investment, and even less will create real wealth by climbing to the top of the property ladder.
Attaining wealth doesn’t just happen, it’s the result of a well executed plan done by experts.
Understand
SteP 1: Engagement & Strategy Session
An initial discussion will outline your current situation (financially, educationally & emotionally), goals, and objectives. During this discussion, we will analyse your current team and determine if there are any missing links or sources of knowledge we can leverage from or upgrade. These can be in the form of brokers, accountants, financial advisors, solicitors, mentors, or buyer’s agents. We will then step you through our process, formulate a plan, and show you what can be achieved. Once we are clearly aligned and you have engaged our services the search begins!
Research
SteP 2: Property Sourcing
Following the engagement and strategy session, we will search Australia-wide within our specifically selected locations for both on and off-market investment opportunities. Using our in-house market data, experience, and know-how, we then narrow down our search from hundreds of properties to one property, which will be presented for you to review. If you agree this deal is acceptable, we will then proceed with drafting up a formal offer for submission.
Acquire
STEP 3: NEGOTIATION AND OFFER
We submit a formal offer on your behalf and negotiations commence with the selling agent. Each state has its own individual process, and we will hold your hand every step of the way to ensure you are well informed and are fully aware what is required. Once negotiations are complete and offer is accepted, we proceed to contracts.
STEP 4: Due Diligence
At Palise Property we have a dedicated team to complete this vitally important step of the acquisition process. This step is the one most investors don’t give enough time to or understand completely and where we truly shine above the rest!
STEP 5: Inspections, Valuations and Compliance
Following completion of Due Diligence, we recommend carrying out inspections. These can be carried out by one of our recommended building and pest inspectors.
The inspection will have a multitude of photos, videos and reports detailing the condition of the property and any potential defects which may need rectifying either now or at some point in the future. It can also be used for further negotiation in terms of price.
In parallel to this, you will be arranging the finance and having valuations on the property. The contract will typically be subject to a finance clause as further security and protection for our clients. It is imperative that deadlines are met during this stage as delays can result in financial penalties or losing out on the deal and we will work with you and request extensions if required. Once everything is in place we move on to settlement!
Step 6: Contracts
Once the offer on your investment property has been accepted it goes under contract. We can recommend the best legal team in the state we are purchasing to provide guidance in this important part of the journey. Generally, our offers are subject to a finance and a building and pest inspection clause. This gives you peace of mind that if anything untoward was uncovered during the next steps you are not in a jeopardised position and you can crash the deal and get your full deposit back.
STEP 7: PROPERTY ACQUISITION AND MANAGEMENT
This is the final step of the Acquisition process! Here we work with you towards settlement of your investment property. This is where all your property investment team members come together to complete the transaction. It is a very exciting and sometimes stressful time but be assured we will be there all the way until the end.
Prior to settlement taking place we will put you in touch with experienced property managers in the region who will take care of the day to day management of your investment.
Grow
STEP 8: PORTFOLIO REVIEW AND PASSIVE INCOME!
This last step is often one that is neglected. Keeping in touch and having regular reviews of your portfolio will keep your investment running smoothly. Think of it like servicing your car or keeping your body fit and healthy! If you neglect it, more often than not it is even harder to get it back on track.
We are always here to keep in touch and help you work towards your next purchase and achieve your passive income and portfolio goals. The relationship we build together is one that will ensure you stay on track and reap the rewards that investing in residential property offers!
