Case study: Story of buying my first investment property

When Jane* approached Finance Manger Tracey, she wasn’t sure whether she could buy her first investment property. With good advice and a private treaty, Jane managed it at a favourable price.

Jane was referred to Tracey, a Finance Manager at FinanceCorp by a financial planner who looked after Jane’s father.

“Jane was a very stable client,” says Tracey. With 10 per cent of the deposit saved, a small financial gift from her parents and long-term employment, Jane was also happy to pay for mortgage insurance to secure a fantastic property.

This didn’t necessarily guarantee smooth sailing.

“The only challenge was a very difficult solicitor who did not represent the client very well at all,” says Tracey.

Jane used Tracey’s services for each step of the mortgage process. Tracey visited Jane at home twice, and lenders were researched based on Jane’s specific requirements. Tracey collected documents for the loan application, which was then followed through right to settlement, while keeping all parties informed along the way.

Jane was advised to wait until her pre-approval came through to confirm that the lender was happy with the loan amount and then start bidding through private treaty, with bids based on the research the two had already done.

“The RP Data reports on properties were particularly helpful,” says Tracey. “Jane could look at properties and rents around the area to ensure she was getting a good deal.”

In bidding through private treaty, Tracey’s advice was to start low, so there was more room for negotiations. Buying through private treaty has a number of advantages, one of which is avoiding the potential stress of an auction, where split-second decisions can change everything.

“Auctions can be so stressful,” says Tracey. “And you do not have the option of a cooling-off period.”

Jane is very satisfied with Tracey’s service. “[Her] ability to clearly explain the overall loan process and minor (but important) details involved” was particularly impressive.

“Tracey is very friendly, compassionate and understanding, with an excellent understanding of my needs.”

Jane also commended Tracey’s product knowledge and explanation, and her excellent communication, with the ultimate praise being that she will recommend Tracey to other people.

Client’s name has been changed.

Jane could look at properties and rents around the area to ensure she was getting a good deal.

Auctions can be so stressful, and you do not have the option of a cooling-off period.

Find a Finance Manager who will understand your needs and help you navigate the lending process.