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4. Raise Your Profile

In the real estate game wallflowers don’t get dances. Once you know what you want, what it should cost and where it’s located, get out there and get known. Most agents keep tabs on buyers who are serious and ready to jump in their area. For an agent, a smart, cashed-up purchaser who can be quickly married up to their perfect property partner saves headaches, puts money in the bank and helps forge an important professional relationship. A word of advice though – be serious. Time wasting purchasers get short shift from busy agents.

3. Be prepared

Take a leaf out of the scouting book of bargains. Get ready to break the tape and be first across the line. By taking care of a few of the basics, you can remove uncertainties and move quickly.

Arrange your finance before you start hunting your prey. Know how much you can afford to borrow and get it organised. Now is the time to shop around for finance, not when your unconditional day of reckoning is imminent. Also, go through the exercise as to what sort of rental you need to achieve on your investments to help service the loan.

Form a relationship with professionals whose help you’ll need when snatching a deal. Most valuers are happy to discuss generalities of how they view their areas of expertise and can stand at the ready to provide their services quick smart when they know you are likely to call. Similarly have the number of your trusted pest and building inspector handy so they can provide a ready to go service when you come up with a possible winner.

2. Get smart

Forearmed is forewarned. When a bargain arrives, the first buyer to spot it will be the victor so if you don’t recognize the gift horse when it arrives, someone else will ride off with it.

Know your market. Set your criteria about what you want and get informed. If you know that your next investment is to be a four-bedroom, two-bathroom, double garage renter in outer Melbourne, get real about what they sell and rent for. Become the local expert. When the right property comes along, you might be surprised to find that both the vendor and your competing buyers have scant idea as to what a great deal the property offers.

1. Look for an eager vendor

A vendor under distress is the most obvious component of a cheap purchase. There is no moral high ground here– often it’s a case that the seller needs a quick disposal and is willing to cut back on the price in order to move the bricks and mortar on. While it is not pleasant to see another party in a sticky situation, you may be doing them a favour by relieving them of the property, and in most circumstances, it is a business transaction where if you don’t, someone else will.

‘Eager vendor’ situations include:

• Vendor has bought elsewhere
• Divorce Settlement
• Mortgagee sale
• Deceased Estate

Trap 6: Being a passive owner
Once you buy the property, find out who you need to contact on your executive committee if something goes wrong in the building. Ferguson also suggests that you “take an active interest in what goes on in your building”. “Attend the annual general meeting so that your voice is heard, and consider becoming a member of your building’s executive committee,” he says.

Trap 5: Taking the agent’s word for it
“Before you buy, check whether the owners corporation will welcome both you and Fluffy into the building,” Ferguson says. “Don’t necessarily take the word of the selling agent when he tells you the block is pet friendly.”

Trap 4: Getting stuck in the present
While it’s important to ensure the property is in good condition today, it’s also just as important to ensure that the body corporate has adequately planned for future maintenance expenses, such as painting. “Have a good look at the condition of the building and make sure that the funds in the sinking fund match long-term maintenance planned for the next few years,” Ferguson advises.

Trap 3: Forgetting to check the details
If you’re buying an apartment that has a car space allocated to it, check that the car space or garage you were shown is correctly allocated to the apartment. “The strata plan will usually detail this,” Ferguson says. “Your lawyer should also take you through the contract to ensure you understand each step of the purchase process.”

Trap 2: Failing to read between the lines
Get your hands on as many committee meeting and AGM minutes as possible. Read through the documents carefully to see whether repairs are actioned quickly, how the body corporate committee members work with each other and whether there are any disputes between owners.

Trap 1: Not reviewing the financials
David Ferguson, President of the Institute of Strata Title Management (ISTM), recommends that prospective buyers engage a professional to “search the books and records of the owners corporation, to view the finances and see any issues the owners corporation is facing”.