avoid these 7 costly mistakes when buying your next

Avoid These

7 Costly

Mistakes

When Buying

Your Next

Property In

Sydney

John Carew

Avoid These 7 Costly Mistakes When Buying

Your Next Property In Sydney

0410 545 721 | mayfieldproperty.com.au

Buying property is exciting! Australians have a love affair with property and

buying property in the beautiful harbour city of Sydney, who could blame them!

Whether you are buying a home to live in to create wonderful lifelong memories

or because you are looking to build wealth through an investment property;

buying property is very exciting – that is why we have been buying property in

Sydney for over 10 years.

Having been active in the market for so long we know that although very

rewarding; buying property can present a number of challenges; especially to

the uneducated, inexperienced and time poor property buyer.

The recent market conditions in Sydney have been very competitive, often

vicious and there has been little room for the fainted hearted, so knowing ‘how to

buy’ and ‘how to play’ the game in order to navigate the property buying process

can be a delicate matter.

Buying the right property whilst not falling prey to high pressure sales tactics can

be difficult; especially when your emotions are running high and you feel

overwhelmed or frustrated or scared that your dream home will be snapped up

by another; often leads to poor decisions; some that you may come to regret

later.

Property is one of the biggest investments you will ever make so it’s important to

understand the many moving parts that are involved in buying a property; there

is a lot to consider it is not just about the purchase price.

Having been so active in Sydney and having helped hundreds of buyers secure

homes we have also seen many mistakes that ‘uneducated’ buyers make.

Mistakes that can be avoided if they just had the right real estate advice.

WELCOME

2 |

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That’s why I have put together this guide “Save Time & Money - Avoid these 7

Costly Mistakes” by educating you it is my hope that will avoid these potential

pitfalls and move forward confidently towards securing your dream home.

Take 5 minutes now to read through and

understand how these mistakes can be

avoided. I know that by being forewarned,

it will save you a lot of time, money and

heartache. It will empower you to

confidently secure the right property for

you and your family.

Wishing you a rewarding and successful

journey ahead.

Happy property buying!

John Carew Buyers Advocate, Property Buyer, and

Property Negotiator

3 |





MISTAKE #1 – Not Having A Plan

MISTAKE #2 – Not Doing Enough Research and Due Diligence Before

Buying

MISTAKE #3 – Trusting the Advice of A Real Estate Agent

MISTAKE #4 – Not Understanding Your Finances and Buying Structures

MISTAKE #5 – Not Having A Team of Experts on Your Side

MISTAKE #6 – Not Understanding the Art and Rules of Negotiation

MISTAKE #7 – Letting Your Emotions Stand In the Way of Making

Sound Decisions

BONUS MISTAKE – Trying To Do It All Yourself

TABLE OF CONTENTS

4 |





NOT HAVING A PLAN

“By failing to prepare, you are preparing to fail.”

When you don’t have a clear plan or a set path to follow you risk making

several costly mistakes; when buying property. A good plan keeps you on track

and focused.

Your current financial position and your future needs should create the

roadmap of your property buying plan.

MISTAKE 1

5 |





Key points to consider when putting together your plan:

• Your Purpose – What is the purpose for the property? First entry level

home, upgrading to the family home where you will raise a family? Perhaps

it’s to downsize into a more manageable lower maintenance property?

Is it for creating wealth? Adding to an existing property portfolio? Are you

buying with an SMSF?

Getting clear on the purpose is important as your ‘why’ often makes for a

very different property to be found.

• The Present – What does your life today look like? What are your current

circumstances?

Your work or income situation will have a bearing on your plan. It will have to

factor in what you have now for property, what the value of that property is

and what your current financial situation is.

• The Future – What does your future look like? Will you marry, have children,

change jobs or retire in the next few years? Will your financial situation

change?

All of these things will have to become part of your plan.

• The Location – Where do you want to live? Do you wish to stay in the same

area? Are you willing to spread your search further afield? Do you need to

be closer to work, family or private schools?

• Your Personal Needs – What would you like in a home? How many

bedrooms? Do you need parking? A yard? A pool? Do you need easy public

transport? What amenities do you need?

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• Your Finances – What is your existing financial situation? What can you

afford? Is your income and your ability to earn money and make repayments

likely to change over the next few years?

Have you been approved for a loan?

Knowing your wish list and your current financial position now and over the

next 3, 5 or even 10 years will help you to create a solid plan; a path in

which to move forward.

Working through these questions will allow you to prioritise and eliminate

properties, suburbs, price points that no not match your criteria.

This will be vitally important when shopping for a suitable property as

knowing what you want and don’t want will save you a lot of time especially

when properties are moving quickly.

How To Avoid This Mistake A property buyer can provide expert consultation where a personalized plan

can be tailored to your specific needs and wants. By understanding where you

are today and where you want to be, a property buyer is your confidant and

trusted adviser, that can help you get to a successful and stress-free outcome.

They will help provide clarity and help you navigate the way forward.

If you would like an experienced buyer and negotiator to help you to secure the

best property for you; whilst providing unbiased advice and unwavering

support, contact us at Mayfield Property Buyers today for a free consultation

and property portfolio review.

We will even demonstrate how we can save you time, money and the anxiety

that often comes with buying property!

7 |


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“There is nothing more deceptive than an obvious fact.”

Buying a property will be one of the biggest purchases you will ever make. It is

a complex process with many moving parts involved.

Be sure to review the facts, understand the data and seek the right advice in

order to minimise your risk and never sign anything unless you are 100% clear

and committed.

MISTAKE 2

NOT DOING ENOUGH RESEARCH AND DUE DILIGENCE

BEFORE BUYING

8 |





• Property Types – What kinds of property exist in the area you are looking to

invest? Are you seeking a detached home, apartment, villa, and townhouse?

What restrictions, limitations or other factors do you need to consider for each

type? Some developments or buildings or communities may even have

restrictions on any renovations or changes you may wish to make to the

property you are considering and this is important to know upfront.

In addition body corporate or other ‘community associations’ may mean

additional costs that you may not have factored in.

• Property Title – Torrens title is the most common title but there is also

community title and strata title. What does this mean? What restrictions,

limitations or additional expenses may be involved with this? Some

developments or communities may have restrictions on any renovations or

changes you may wish to make to the property. This is important to know

upfront.

• Property Values – Do you know the actual – not the listed – value of the

properties you are considering? Do you know how to determine this and

calculate the returns?

Knowing the true value of a property will ensure that you are not overpaying

for the property. It will also give you leverage to negotiate.

• Existing Infrastructure – What is located in and around the area you are

looking at? Look at the residential, commercial or industrial development mix.

In addition consider local transport, roads, schools, recreation facilities, green

space, medical facilities, cafes, supermarkets, larger shopping complexes –

these will all impact on the value of the property.

• Future Infrastructure – What kinds of developments are proposed for the

area? Will the types of properties being built change? Is there a major road,

Here are some key items that must be investigated before you

consider buying:

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toll way planned? What impact will this have on the neighbouring

infrastructure and amenities? Will this change cause the property value to

increase or decrease? Will the community ‘look and feel’ change?

Ask yourself what is the most important for your immediate needs and over

the coming years?

N.B If you need help learning about what infrastructure changes are on the

drawing block consider approaching the local council. You can quickly

determine if major arterial roads, industrial complexes or other significant

changes are planned or are being discussed by government.

Property is an investment. As stated above it will be one of the biggest

purchases you ever make, so to ensure that the investment is a ‘smart’

decision; it pays to be prudent and a little cautious whilst you are gathering the

information you need to make an informed choice; one where not only the

numbers add up, but where the economics and data support your decision.

When you have this information you will be a long way to minimising risk and

finding a suitable property that matches your needs.

A property buyer will be able to give you real value figures based on unbiased,

accurate research as well as investigate potential changes to the area through

development and work with any other advisers you have on your team to

ensure it all stacks up.

If you would like to save time, money and stress and seek the advice of

someone who will have your best interests at heart and work solely for you and

help you secure the right property for you, contact us at Mayfield Property

Buyers today for a free consultation.

How To Avoid This Mistake

10 |








As a property, buyer Real estate agents are not your friends.

Take care when listing to their advice as you risk spending far more than you

need to. An agent will always act for the vendor and act to move the price and

buying terms in their favour. Never blindly trust a real estate agent; some

caution will save you more than money.

11 |

“Never trust the ‘good’ word of the seller or their real estate agent!”

MISTAKE 3

TRUSTING THE ADVICE OF A REAL ESTATE AGENT





Some key reasons why you should not get too close to one:

• Agenda – Real estate agents work for the seller and are paid by the seller.

They are rewarded with a commission on the sale of a property; the higher

the sale price the more their commission will be. Be careful what information

you share with the sales or listing agent.

• Priority – Many real estate agents are paid a very little salary but rather

make their living from earning a commission. When you are motivated and

rewarded to achieve a higher price create as it is only logical that the only

person a real estate agent is loyal to; will be the vendor.

As a buyer you are not the top priority. You should remember this.

• Manipulation – Real estate agents know very little about you, you’re

finances, your future and so on. In fact the advice they will offer will have little

to do with what works for you but everything to do with what works for them

and their vendor. Many sales tactics will be utilised to get you to try and sign

on the dotted line. Remember their entire motive is to sell the property to the

person who is willing to pay the most and in the quickest possible time.

Be careful sharing with a real estate agent what is your highest price, what

the bank has agreed to lend you or any other financial information. They will

use this in their favour (not yours).

12 |





Real estate agents can be very nice people but truthfully during the sales

process you become one big commission cheque. Their time and energy is

going to go to the person who indicates that they have the money to buy now

and indicates they are prepared to spend top dollar to do so.

After all the higher the sale, the higher the commission and the higher the

acknowledgment and recognition they receive.

A real estate agent is never to be trusted and so their advice and opinion

should be ignored when you are looking at securing a property.

If salesmen, sales tactics and the thought of having to negotiate conjures up

stress and anxiety it will be best to engage a buyer’s agent. A buyer’s agent will

advocate for you every step of the way. They are skilled at negotiating and

liaising with agents and they will take the pressure off you.

In addition a buyer’s agent or property buyer is not paid by commission so they

are not motivated by the price of the property. It’s a fixed fee to ensure they

remain unbiased and impartial every step of the way.






13 |








Property Buying can be complex. When buying property you need to have a full

understanding of where you stand both financially and legally.

It is imperative to understand the legalities and tax implications of the various

‘entities’ in which you can secure a property; whether you are buying a property

as your place of residence or for investment purposes it will be important to

understand this upfront before jumping in.

“An investment in knowledge pays the best interest.”

MISTAKE 4

NOT UNDERSTANDING YOUR FINANCES AND BUYING

STRUCTURES

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Here are some reasons why:

• Current Finances – Do you know how much money is available at your

disposal? Do you know how much you need? Do you know your current level

of debt? This will have an effect on whether or not you will need a loan and

will also impact on how much a bank will lend you.

Other points to note will be your income, your employment status, your credit

history and your ability to make repayments?

• Additional Costs – Buying a property involves additional costs such as

stamp duty, legal costs, removalists, insurance, break costs from an existing

loan etc. etc. These can add up significantly and must be factored in to your

overall cost so you don’t’ risk putting yourself in a financial pickle.

• Future Finances – Buying property may mean some initial repairs or

maintenance. But do you have plans for renovations such as updating a

bathroom, kitchen or doing some landscaping?

If renting the property out will you need to cover any shortfall in the mortgage

repayments?

In addition will your income be likely to change significantly in the future. Is a

change of employment on the horizon, will you be having a child?

Thinking about your financial position over the coming years will be a wise

move and one that can be planned for.

• Contracts and agreements – Buyer Beware! Property contracts can be

complex so it is important to carefully read through them with your

conveyancer or solicitor. A good place to start is to look for cooling off

periods, clauses, restrictions, additional costs, and any penalties that may be

involved. Off course always read the fine print!





In addition if you are buying the property for investment purposes understand

what are your responsibilities to a tenant? Know what your responsibilities for

accounting and tax time are too.

• Buying Structures – You will have to consider which purchasing method is

best for you including buying as an individual in your own name, as tenants in

common, in a partnership, a company, a trust structure or perhaps using your

superannuation.

You will also need to consider the purpose of the property. Are you buying for

investment or buying the property to reside in yourself. The purpose and

intention will have an effect on your ability to borrow money and service loan

repayments. It may also have tax implications both now and should you wish

to sell a property in the future.

The entity you buy in may not just affect you but your family and estate.

These are all very complex matters that unless you are a very experienced

buyer or work within the industry must be discussed with your accountant or

financial adviser. If you act hastily before getting the correct structures in

place changing this will involve a significant cost not to mention the time

involved.

N.B: It is imperative you understand your rights and responsibilities before

signing anything; this is especially so if you are planning on bidding at an

auction where there is no cooling off period.





Property is exciting! There are so many rewards but there is also an element of

risk involved. To avoid making the wrong property purchase not only do you

need to do your research but you need to understand your finances and the

agreements which you will sign.

Property is often a long term purchase so it is important to not only consider

your current position but potential changes over the coming years. This may

not only affect the type of property you buy but the entity in which you purchase

a property.

A buyer’s agent will advocate for your best interests. To do this they start by

understanding your financials and creating a buyer profile and since they

understand property contacts they will work with your accountant and mortgage

broker to help you minimise any risk.

A buyer’s agent will help you save money in more ways than one.













Successful people seek out the experience and wisdom of industry experts to

help them succeed in their ventures; ‘no man is an island’.

Having the right team of experts on your side can be the difference between a

good and bad buying experience. If you intend for your property purchase to be

a wise decision then be sure to consult with the experts first.

18 |

“The strength of the team is in each individual member. The strength of

each member is the team.”

MISTAKE 5

NOT HAVING A TEAM OF EXPERTS ON YOUR SIDE





Here are some key experts you will need to have on your

team:

• Buyers Agent – This is an independent and unbiased advisor who will do

most of the work for you during the buying process. They are skilled in

understanding local market conditions, can determine the true value of a

property, and are expert property negotiators. All of which will save you a lot

of time and a lot of money.

• Mortgage Brokers – They will help you to find the best loan to suit your

requirements. A mortgage broker will have access to numerous types of

loans and lending institutions; and can often seek out more favourable terms

than your bank can provide.

• Conveyancers/Solicitors – This is your legal team whose job will be to

scrutinize the wording in the contract checking for clauses and loop holes.

They will also check, titles, zoning and everything that relates to or could

have an impact on the property. If there is ever anything in the contract that

you don’t understand be sure that your solicitor explains it to you before

signing on the dotted line.

• Building – Building inspectors look past the cosmetic fixtures and the fresh

coat of paint. They will inspect structural areas of the property such as the

foundations, the roof cavity, basic plumbing and electrical work to look for any

current or potential problems that may exists in the home and that which that

could pose a problem now or in the future.

• Pest Inspectors – Like a building inspector they too will look at what is

happening in and around the property. They search for damage caused by

pests such as termites or rodents. Pests are more than just an annoying

insect they can cause thousands of dollars or damage which may not be

easily visible to the ‘naked’ eye.

• Insurance Brokers – They make sure you have the right policy in place to

protect your investment.





As soon as you are to be the owner of the property it is important to have

insurance in place.

If the property you are purchasing is for investment then you can add these

experts to your list too:

• Property Manager – to find and manage tenants, collect the rent and

oversee the integrity of your investment.

• Quantity Surveyor – In order to claim depreciation, you’ll need a tax

depreciation schedule which can only be prepared by a quantity surveyor;

they are experts in construction economics and can help you depreciate the

building and the fixtures and fittings. Depreciation may be advantageous

when it comes to tax time.

Whenever we encounter a challenge or a complex situation in life it is always

best to seek counsel from the experienced and the wise. They can advise you

on how all the moving parts fit together, they can help manage the complexity

of the situation and they can help remove some of the complications and

potential pitfalls for you.

Many of these experts are here to make your property purchase a successful

venture. To make it a success you need to speak to them first so they can do

what they do best.

Be sure to assemble your team first before committing to or signing any

agreements. If you don’t know any reputable and experienced experts in these

fields be sure to contact a buyers agent they can help you with this too.













He who negotiates best wins! Being a Master Negotiator is a rare skill to have

and when buying property it is a necessary component of playing the real estate

game.

When buying a property the stakes are high; knowing how to negotiate well can

make the difference between getting a good price or paying too much for

property.

Not being able to negotiate well will cost you more than money; it will cost you a

lot of time and anxiety.

21 |

“You don’t get what you deserve you get what you negotiate.”

MISTAKE 6

NOT UNDERSTANDING THE ART AND RULES OF

NEGOTIATION





How you can be a good negotiator:

• Being a Detective – Negotiating is about investigating. It is about being able

to uncover the vendor’s motivations for sale and how quickly they need to

sell.

Likewise; the real estate agent will be trying to do the same to you so

beware! Do not share too much information with the vendor or their agent.

The more information they have about you the more ammunition they have to

use against you during the negotiation process.

• More Than Price – A good negotiator can not only work out a good price but

can assist with getting favourable terms. These terms can vary from extended

settlement, early access to a property to having extras such as furniture or

other items being added to the deal.

• More Than Words – A good negotiator is a great communicator. It is not just

about the words spoken but understanding body language too. Often what is

not said tells you just as much as what is shared.

• Action – The art of negotiation is about knowing when to take action.

Getting a deal across the line is about knowing when to be aggressive, when

to cool off and when to walk away. Trying to do this yourself can be difficult as

emotion often overrides logic.

An unbiased third party who is skilled in negotiation will be removed from this

and will have a better chance of reading the situation.





Being able to negotiate well comes from being able to detach yourself from the

outcome and think and strategise objectively; for many buyers being able to

‘turn off’ their emotions is near impossible as you have so much riding on the

outcome.

A buyer’s agent is well versed in how to conduct a negotiation; they usually

have a calm demeanour and are very analytical in their approach. They have

the ability to build rapport with all parties without giving much away.

Most of all they know when to strike but they also know when to walk away

from a deal when the price or terms no longer met your outcome.

Having someone skilled in your corner, being able to control the negotiation

process will save you much more than money.

Many people adopt a buyer’s agent for assistance with auctions but there

negotiation skills and advice will prove priceless whether you secure the

property or not.













When emotion is high logic is low.

Good and bad emotions will affect your decision making and cloud your

judgement.

When you get emotional during the purchase of property you risk making a

series of bad decisions. It happens when you lose focus, become frustrated and

impatient. When this happens it can cost you more than just money.

Successful property buying is achieved when you stick to the facts and stick to

your plan.

24 |

“Never let your emotions overpower your intelligence.”

MISTAKE 7

LETTING YOUR EMOTIONS STAND IN THE WAY OF MAKING

SOUND DECISIONS





Some key reasons why you must not let your emotions get

in the way:

• Love At First Sight – Be careful not to walk into a property and start talking

about where your furniture will go or which bedroom will be allocated to each

child. These are tell-tale signs to an agent that you are ‘falling in love’ with the

property and picturing your life in this home. This is the sign an agent is

looking for, it tells them you have become emotionally connected with the

home and lifestyle. This will give them a lot of leverage and will have them

applying pressure in no time.

• It Can Be Used Against You – Real estate agents will use anything for

leverage as they try to get you to spend more and sometimes that’s more than

the property is truly worth.

o Never tell them anything about your financial situation.

o Never disclose your budget.

o Never disclose your motivations for buying.

o Never give them a time frame.

o Never let them know that you are a ‘frustrated’ buyer.

o Never tell them what you plan on doing with the property.

o Never seek advice from the real estate agent.

• Fear – Successful property buying is about sticking to your plan,

understanding your numbers, and the goals that you wish to achieve.

Often times once you have spent months doing the rounds in the real estate

market you get tired and frustrated; you start to second guess yourself. And

you will become less wary of others and their ‘free advice’ and opinions.

When you start to get desperate you will start to make decisions out of fear.

This is a dangerous place to be in and if often when logic goes out the

window.





Learning to control your emotions comes from being detached from the

outcome, but of course this is very hard to do when you have invested so much

time and energy in the lead up to this moment.

A buyer’s agent will never use your emotional state against you. They advocate

and support you the buyer every step of the way. Savvy buyers know that off all

the challenges involved in buying property; the hardest one is being able to

separate your emotions from the purchase and being able to remain calm,

think clearly and stick to the facts.

To avoid your inexperience or your emotional state clouding your judgement it

is best to get an impartial third party to act for you. They will be capable of

making sound decisions and acting in your best interest.

At Mayfield Property buyers we specialise in taking the emotion out of the

buying process and will help you to overcome any obstacles or challenges

along the way. We speak the truth and give you a ‘reality check’ when needed.













When you try to buy property on your own you risk making mistakes that could

result in legal action. These kinds of mistakes end up costing you so much in

terms of time, money and confidence.

27 |

“You can’t do it all yourself. Don’t be afraid to rely on others to help you

accomplish your goals.”

BONUS MISTAKE

TRYING TO DO IT ALL YOURSELF





7 reasons why you need a Buyers Agent:

• They Know Their Stuff – A Buyers Agent’s job is to assist people in buying

property. It’s what they do day in and day out.

• They Know Their Market – They have access to information and data that is

only often available to industry professionals. They also have the ability to

analyse and interpret this data. They understand micro economics and the

factors that can affect or influence one property market to another.

• They Have Strong Negotiating Skills – Even if you managed to get this far

on your own, the negotiating part of the buying process is crucial. You may be

able to fake it a bit but there is no way possible that you will ever negotiate

the best possible deal. Why? Because you are not a Buyer’s Agent, you will

not have the level of experience in negotiating and reading the situation like a

buyer’s agent can.

• They Know Their Network – A Buyers Agent has connections you could

only dream of. The have strong relationships with industry professionals

which they nurture. This gives them privileged access and information that

you yourself would find difficult to obtain.

It is also through their network that they can get off market or silent property

listings which are never publicly advertised.

• They Know Their Limitations – The rules of engagement come from a code

of ethics that Buyers Agents stick to like glue. Integrity, and honesty and their

reputation is everything. If they cannot assist you they will advise you upfront.

• They Know Their Role – Although a Buyer’s Agent is mostly there to advise

you, they also get to see you at your best and worse times in the property

buying process. It’s a life changing decision you are making and they take it

seriously, even if you need their shoulder to cry on or a good ‘reality check’ at

times.





• They have the experience – A buyer’s agent is a property buyer it is all they

do. So naturally they have the skills, the knowledge and the know how that

comes from years of practice.

A good buyer’s agent will have many testimonials from past clients which

they should be able to share with you.

The simple answer is: consult with a buyer’s agent!

They will be able to guide you every step of the way, provide unbiased advice,

remove the emotion that can cloud your judgement and use their negotiation

skills to get you the best deal and into your dream home sooner.













Mayfield Property Buyers are your dedicated buyers advocate. We have a

history of success in assisting busy, time poor professionals in securing their

next property at the right price.

We are an independent Sydney buyer’s agent providing unbiased property

buying solutions and unrivalled customer care. We are your trusted advisers

and work confidentially and discreetly.

We can help you:

• Understand the true value of a property

• Educate and empower you to feel confident in your purchasing decisions

• Isolate local market trends and predict price fluctuations and below market

opportunities

• Unlock private and off market property listings

• Confidently negotiate the best price

• Make smarter decisions for your family and your lifestyle

• Build your property portfolio that secures your financial future.

Whether you are buying your first home or adding an investment to your

portfolio, let us save you time, money and stress.

Our aim is to saving you thousands of dollars, save you time, save you from the

frustration and anxiety that property buying often involves.

Our promise is to work with you to secure the right property for you.

Why not put us to the test. Contact us today for a free consultation.

ABOUT US










John Carew e. [email protected]

m. 0410 545 721

Web: www.mayfieldproperty.com.au

Facebook: facebook.com/MayfieldPropertyAU

LinkedIn: au.linkedin.com/in/john-carew

Resources:

ASIC's MoneySmart

Repayments Calculator

Stamp Duty Calculator

Property Conveyancer

Transport

Local Councils:

Leichardt Council

Ryde Council

City of Sydney Council

Kurrangai Council

Inner West Council

CONTACT US


mailto:[email protected]












https://www.facebook.com/MayfieldPropertyAU/




https://au.linkedin.com/in/john-carew







https://www.moneysmart.gov.au/



https://www.commbank.com.au/digital/propertyhub/calculator/home-loan-repayments



http://stampdutycalc.com.au/





http://www.aicnsw.com.au/



http://www.transportnsw.info/

http://www.leichhardt.nsw.gov.au/



http://www.ryde.nsw.gov.au/Home



http://www.cityofsydney.nsw.gov.au/








http://www.kmc.nsw.gov.au/



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