There is nothing more frustrating than finding the property of your dreams, only to learn after negotiating your contract that you have been declined finance on your mortgage application.

To save your time and that of your potential seller I highly recommend arranging finance pre-approval with your bank or mortgage broker. This process should give you a clear idea of what you can borrow, allowing you to only consider properties that sit comfortably within your budget. Better still, pre-approval will expedite the contract process because you would have already provided, ahead of time, all the financial information needed for the banks to approve your loan application. This means you can more likely propose a shorter finance clause when you make your offer to purchase, putting you in a stronger position of negotiation.

Remember too, if you plan on bidding at an auction you will want the peace of mind of pre-approval as auction contracts are NOT subject to any finance clause.

I am happy to connect you with some fantastic mortgage brokers (regardless of whether you buy through me). These brokers provide free access to dozens of lenders. For more information contact me.

Once you are clear on your budget it will be time to decide on the type of property you are after and to shortlist some suburbs. We suggest you also consider the suburbs next to your preferred areas as these may offer more affordable options with more property inclusions. Remember, it’s good to keep an open mind.

Check the SOLD sections of real estate portals to get a sense of prices and start attending open homes to get a feel for value.

I would caution on relying heavily on automatic price estimates which sometimes appear on property sites or from your bank. These can sometimes be very inaccurate and not factor things like recent renovations, whether a property has a view, has water frontage or is at penthouse level versus ground floor.

It is important that you are comfortable with your purchase. However, sometimes I meet buyers at one property inspection and then meet them again nearly 12 or 18 months later to find out they’ve still not bought.

A consistent theme with these buyers is that they find themselves never finding what they want (or what they think they want) and then prices move. Often they are unable to tick items on their wish list using properties in their preferred suburbs. If a property search is extending beyond 6 months, chances are something needs to bend – either the wish list, or the suburbs being considered or excluded.

The term ‘analysis paralysis’ will resonate with some people where the tendency to over-analyse will prevent seizing an opportunity which ends up in a sense of missed opportunity.

Especially when a market is upward moving, waiting a period of 3 or 6 months can cost tens of thousands of dollars both in extra price paid and missed equity gained. Therefore, it can be helpful to take a step back, regain perspective and refresh yourself when searching for property becomes tiresome and tedious.

A property that is an 8/10 is sometimes worth considering especially where you can make some tweaks and at least begin your journey on the property ladder.

If you find the property you do love, do not be scared to make an offer straight away even if it is on a weekend or after hours. Assuming it will be there tomorrow may be a mistake.

In Australia foreign buyers are typically required to obtain foreign investment review board (FIRB) approval before purchasing residential real estate. Types of foreign buyers include:

- Temporary residents
- Foreign non-residents
- Companies or trusts where a foreign individual holds 20% or more ownership or voting rights or where any group of foreign individuals collectively holds 40% or more ownership or voting rights.

What can foreign buyers purchase

Foreign buyers will generally be granted approval to purchase:

- new dwellings
- vacant land (where construction occurs within 4 years)
- commercial property (applications typically not required provided value is under the threshold)

Applications can also be made to purchase existing dwelling under the following circumstances

- where substantial development is planned which will increase property stock and create local employment opportunities
- where you are a temporary resident and will live in the property during your time in Australia – but sell the property upon departure
- where you are a foreign company with a substantial Australian based business who requires housing for your Australian company employees

If you are in the market for a specific type of property, let me know. I have connections to various new projects which meet FIRB approval.