Case study: Buying my first investment property


When Jane* approached MFAA Accredited finance broker Nicole Cannon, 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 an MFAA finance broker by a financial planner who looked after Jane’s father.

“Jane was a very stable client,” says Nicole. With 10% 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,” said Nicole.

Jane used the Nicole's broking services for each step of the mortgage process. She visited Jane at home twice, and lenders were researched based on Jane’s specific requirements. Nicole also 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 Nicole. “Jane could look at properties and rents around the area to ensure she was getting a good deal.”

In bidding through private treaty, the broker'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 Nicole. “And you do not have the option of a cooling-off period.”

Speaking of the service of brokers Jane said: “Their ability to clearly explain the overall loan process and minor (but important) details involved was particularly impressive. 

*Client’s name has been changed.