Pay attention to the settlement process
When you’re buying an investment property, the process doesn’t simply end with finding a property that suits your portfolio or yield requirements.
The settlement process is very important, yet often overlooked by purchasers.
It is highly recommended to appoint a settlement agent or solicitor to facilitate your settlement, and one whom you are comfortable with. In appointing or choosing a settlement agent it is not recommended to go on price alone. If you think it is expensive to hire a good settlement agent, it can be even more expensive to hire a bad one.
There is a recommended maximum fee schedule that settlement agents use. When negotiating your settlement fee, understand that this fee will be for creating and co-ordinating documentation and settlement; there will be other registration fees and statutory costs that you must budget for. At the time of engaging your settlement agent, ask for a fully detailed quote to ensure you budget for all costs.
A good settlement agent will act as the conduit co-ordinating communication between you, the real estate agent and the financier to ensure all conditions to the contract are finalised and that settlement happens on time.
Above all, complete thorough research, understand all the processes involved, and shop around to find a settlement agent or solicitor you are comfortable with.