How can buyers get prepared to purchase?
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Georgia: Hi, I'm Georgia from the Max Brown Real Estate Group, and today we're joined by Sean Kehoe from MoneyQuest in Croydon to discuss how buyers can get themselves organized, so when a property of interest does hit the market, they're able to pursue it and put forward an offer. So, Sean, what would you suggest to those that are currently looking to purchase a property in the next few months?
Sean: Look, I think, Georgia, buyers have to be ready. We're in a very competitive market right now, so having all your income documents organized, all your bank statements, those sorts of things, to get your conditional approval up and running so that when you are ready to buy, you can act straight away.
Georgia: So you mentioned conditional approval. I think there's a bit of confusion out there in regards to what that actually means. Are you able to explain the difference between preapproval versus conditional approval?
Sean: Yeah, certainly, Georgia. The difference is, with the preapproval, the banks actually put the numbers through their system and it's a computer generated response. So no assessor has actually picked up the file, looked at your income documents, looked at your bank statements, to see if there is an issue. With a conditional approval, that's what you want. You want a bank assessor to pick up the file, go through it, look at your bank statements, see if there's any concerns that they have, and then provide that conditional approval, which will give you comfort when you go and put an offer in on a property.
Georgia: So, we know there's a lot of talk about government grants and incentives at the minute. Are you able to discuss a little bit more how those work?
Sean: Yeah, look, it comes down to the individual circumstances. So, particularly if you're a first home buyer at the moment, there is so many grants, both federal and state government, so what you qualify for, depends on your circumstances. It also depends on the property you're buying, whether you're building, whether it's established. So it's really important to get in contact with your broker, where we can go through and talk about what you qualify for, so that you're looking at the right properties.
Georgia: So, with the market being so competitive at the moment, if I was looking to purchase a property in the next few months, what would your three points of advice be for me to consider?
Sean: Yeah, look, I'd probably start with a conditional approval. So I'd go out there, talk to your broker, find the right lender for your circumstances, because the bank you're dealing with now may not be necessarily the bank that's going to give you the money to buy. So you want to get buy-in from the bank so that you can be confident when you go out and putting offers in on property.
I'd also look at what watching your spending. So the banks are really honing in on discretionary spend, so Afterpay, Zip Pays, gym memberships, that sort of thing. So, really, if it's not necessary for you to spend that money at the moment, it's probably in your best interest to build your genuine savings. So, that's certainly another area I'd look at.
Also, too, I mean, it's such a competitive market and marketing is a wonderful thing. So a lot of these banks are out there showing all these specials, but the detail is in the fine print, and if you go to the wrong lender, you may not be able to get the money you need to buy that property.
Georgia: Well, thank you very much for your time today, Sean. If we can be of any assistance in your purchasing journey, feel free to give either of us a call. We look forward to speaking with you soon.
By Emma Jackson - 18-Jun-2020
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