Paul Glossop: Welcome again to Pure Property Investment one on one. Today, I’m joined by Ross Le Quesne. Ross, thanks for joining us, mate.
Ross Le Quesne: Pleasure to be here.
Paul Glossop: Ross is the Principal of Aussie home loans both in Parramatta and Rouse Hill in Sydney. For those those who are interstate and don’t necessarily know where they are, they’re sort of right in the middle media belt of the western suburbs of Sydney, and one of the biggest growing population-wise areas in the country. Not really the topic of what we want to discuss today, but what are probably more so is topical on is the fact that obviously as investment property buyers’ agents and buyers’ advocates for owner-occupiers ourselves, one thing we see quite often is investors or home buyers ready to go shopping or potentially have already signed a contract sometimes even, and not having their finance aligned.
So, one thing I’ll probably want to hopefully discuss with yourself and things that you might be able to advise our viewers on is how can an investor or a home buyer be best prepared to make sure that they’re ready to sign a contract financially.
Ross Le Quesne: Yeah, that’s a great question, Paul. So, for the viewers, I guess one of the most important things is to be finance-ready. So, what do we mean by being finance-ready? So, finance-ready means to have a pre-approval in place, so by the time you talk to Paul and his team, that you’ve got your finance in place, ready to go out and purchase. So, what that means is, first, you need to have your income sorted. So, if you’re a PAYG employee, that’s your pay slips, etc. If you’re a self-employed person running a business or a sole tradership, you need to make sure that your financial statements are up to date. That you’ve gone and seen your accountant, and they’re ready to go, because the banks are going to ask for these when they’re assessing your loan application. The second thing that you need to make sure is that you’ve got your deposit ready. So, for some people, for people with existing properties, that may be equity in a property. For first-time buyers, it might be savings or help from a family in the way of a gift or a guarantee.
Paul Glossop: Yeah, right. There’s a bunch of different aspects here that I think people need to consider. But, some, when it comes down to everything, ultimately comes down to the crux of having those conversations well beforehand. I think twofold, it’s having those conversations, but also having an objective. If you’re an investor, having an understanding of what you’re buying and why you’re buying it before you go ask for the money. And then once you get that money, understanding, “Okay now I’ve got the finance that we wanted to get allocated”, it really is going to feed into buying the certain property type, which fits the criteria and the objectives that we want. Or, if you’re an owner-occupier, really understanding what your borrowing capacity is because no doubt there’s plenty of people who go shopping, and then come to talk to you when they’re about to go to an auction tomorrow, or give it three days from now on a Saturday, and they say, “I want to buy this property, it’s 1.6 million dollars”, and you say, “Well, hang on a second. Let’s just make sure that you can get that money ready to go”.
Ross Le Quesne: Yeah, especially in this environment, Paul, it’s a great question because the market is changing on a week-to-week basis, and lenders are tightening how much they will lend, and putting different buffers in place because of the APRA requirement. So, it is really important that you do speak to your mortgage broker, and you do look after your borrowing capacity.
Paul Glossop: Great insights, and I think the key for that, too, for all our viewers is making sure that you have discussions with your broker well beforehand, and it’s something that’s vital along with probably your accountant, your buyer’s agent and potentially financial planner, as well.
So, if you do want to get in touch with Ross or anyone from his team, feel free to give him a call. His contact details are at the bottom of the screen. You can also contact us for any property-specific questions as per our details below as well, and we’ll catch up with you soon. Cheers!