Seven important considerations for you if you are contemplating

purchasing an Investment Property

August, 2015

Legal DisclaimerThis presentation is offered for general information

purposes only. It does not constitute specific legal

advice or opinion. You should not act or rely upon

any of the information contained within this

seminar without seeking the advice of a qualified

solicitor who specialises in the particular area of

expertise and jurisdiction that you require.

Presentation OutlineIntroduction 4

1. Take time to consider the best investment vehicle 52. Know your dollar limit before you start 93. Know how you will pay your deposit 104. Undertake independent Pest & Building inspections 125. When choosing a property, look at the long term benefits 166. Insure yourself 187. Choose a good Property Manager 19

Contact Us 22

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IntroductionPurchasing an investment property is generally a major life decision.

It involves a significant commitment of time, finance and capital... all the more reason to…

"do it well"

This presentation covers seven (7) tips, some of which may be useful to you.

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1. Take time to consider thebest investment vehicleThere's not a "one size fits all" approach to this...

(1) if you want a tax break, it may be best purchased in your name...

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1. Take time to consider thebest investment vehicle(2) if you want to increase your family's assets, but you don't want to increase your ownership of asset (for example, because you are a sole trader, partner or a director of a trading company) it may be best to buy the asset in your spouse's name or another entity (for example, Family Trust, Holding Company)...

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1. Take time to consider thebest investment vehicle(3) if you want to be able to stream income from the investment to family members, it may be best to buy the property in a Family Trust.

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1. Take time to consider thebest investment vehicleSuffice it to say, it may be wise to take advice from your lawyer and accountant before it's too late, having already entered into the contract.

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2. Know your dollar limitbefore you startWe believe it's best to obtain pre-approval of finance. This will then enable you to hone in on properties within your parameters without wasting time on those that aren't.

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3. Know how you willpay your depositYou won't necessarily need to have a 10% cash deposit. If you're asset rich, cash poor, your Lender may be able to organise a Deposit Bond.

You may also need the Vendor to pre-approve a Deposit Bond if there isn't already a provision in the Contract allowing its use.

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3. Know how you willpay your depositIf you are cash poor, and can't secure a Deposit Bond, you can always ask the Vendor if they'll accept a 5% deposit instead.

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4. Undertake independentPest & Building InspectionsIf you're going to require these inspections to be undertaken before you proceed with the purchase, do what you can to place yourself in the best position to have them undertaken quickly and independently of the Report obtained by the Vendor or the Vendor's Agent.

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4. Undertake independentPest & Building InspectionsIt could be that you find the place you want, but end up in a race with another prospective purchaser.

Having identified the inspectors you want to use, and having touched base with them about their requirements, should place you in the best position to be on the front foot when it counts.

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4. Undertake independentPest & Building InspectionsSome Contracts (particularly Auction Contracts) may contain Reports provided by the Vendor or the Vendor's Agent.

Although the information may prove useful, be aware this Report was prepared with the Vendor's interest in mind, not yours.

As such, it may not reveal important factors that you should be made aware of before agreeing to buy the property.

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4. Undertake independentPest & Building InspectionsThe same advice applies for Strata Inspection Reports in the case of purchases in a Strata or Community Scheme.

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5. When choosing a property,look at the long term benefitsTake into account not only rental return, but capital growth.

Buy properties that have schools, shops, transport and employment opportunities in their vicinity, as they are more likely to be attractive to the greater community of tenants and prospective purchasers of investment properties.

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5. When choosing a property,look at the long term benefitsAlso, make the property attractive to more renters by keeping the inclusions in neutral tones and good order.

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6. Insure yourselfYou should seek advice from Financial and Insurance Advisers regarding the Insurance appropriate to your circumstances.

It would be disastrous if you needed to sell the property urgently due to your inability to maintain mortgage payments during a lengthy vacant period.

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7. Choose a goodProperty ManagerRemember the Property Manager's job is to manage tenants, your job as Landlord is to maintain the property.

We find that people seem to do best when they don't take a "set-and-forget" approach.

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7. Choose a goodProperty ManagerBe interested in your investment…

Be pro-active in ensuring the property is maintained well…

Leaving a property to deteriorate just because no-one has raised any complaints may gradually de-value your investment.

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7. Choose a goodProperty ManagerYou should ensure you are able to inject some capital every now and again to keep it safe, tidy and functional.

This will also attract good quality tenants and increase your prospects of a quick sale when your investment has done its job for you.

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Turnbull Hill Lawyers – Contact UsIf you have any further questions about investment properties or a related property law matter:

Call us on 1800 994 279 or email us

We will endeavour to respond to your enquiry within 24 hours.

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