Are you thinking about buying commercial property or residential property in 2025? Whether you are a first home buyer, a business owner or a seasoned property investor, these are the key considerations that can help you to make better decisions.
10 Property Buying Tips for Individuals
1. Always be learning and keep informed
Read, Listen, Watch: Research and extend beyond what you already know. There are many good property trend blogs, podcasts and books available to assist your property education journey. Keep our MCP Property Guide handy as an in depth resource.
2. Create or review your budget strategies
Beyond earning and spending, apply strategies like “paying yourself first” and allocate say 10% or more of your after-tax income to savings and investments. Look at where can you trim consumer spending habits and redirect these funds to savings. See our recommended money habit books.
3. Focus on Revenue – Look to increase your Income
If employed: Can you pitch yourself for a promotion, negotiate a raise, explore a side hustle, move jobs, or gain a qualification?
If self-employed: Can you create new package deals, offer a new product or service to existing customers, ask for referrals, learn a new in-demand skill that complements your business.
4. Understand your credit score
Your credit score in Australia typically ranges from 0 to 1,000. From a lender’s perspective, the higher the score, the more financially trustworthy a person is found to be. Learn how to protect and manage your credit score.
5. Be debt savvy
When applying for a property loan, banks and credit providers will assess your existing debt. Start now to pay down any ATO and consumer debt, review HECS debt and reduce credit card limits. Look to consolidate credit cards and personal loans to manage interest/repayments.
6. Avoid “click bait” headlines
As in… will prices crash, will interest rates go down, where are the latest hot spots – most times this is speculation and distraction. Instead, remove emotional triggers by doing quality research. (Point 1 above).
7. Talk to a property accountant
Discuss income strategies like how to position your employment, ABN or businesses income and what is the best investment structure for you – in your name, SMSF, Trust, other? We know many experienced firms, so Ask us for an Introduction
8. Look beyond the taxation benefits
When investing in property, be aware of Tax and Depreciation strategies but also make sure the underlying investment makes sense for your long-term goals. Consider your capital growth strategy and rental yield for passive income needs too.
9. Talk to a buyers advocate that knows your target areas
Once you have a plan in place, a buyers advocate will help with access to off-market properties, established relationships with real estate agents and buying at auction strategies.
10. Talk to a MCP Finance Broker
You might be closer to a pre-approval than you think. We can assist to match you to the right lender at the right time. Start with our online Mortgage Finance Guide.
5 More Tips when Buying Commercial Property
1. Be debt savvy
Learn the 5Cs of credit to understand how banks assess applications. Pay down ATO debt, get lending covenants are up to date and ensure your lending is correctly structured to manage interest/repayments.
2. Explore the right structure
Talk to your advisors about the best property ownership structure for you. An option might be to purchase property via a Self Managed Super Fund. Know the basics and more. Start with our online SMSF Finance Guide.
3. Understand the profile of asset you are buying
If you buy a tenanted property, quality of Income is critical. Make sure that you understand what is the WALE.
4. Plan for the unexpected
Whether you want to develop property or buy your own business premises, it is wise to understand the potential for unexpected costs or delays and then allocate appropriate buffers.
5. Talk to a Business Finance Broker
Business Finance is a highly specialised area. Our Business Finance Guide offers insights into best practices for structuring and obtaining commercial finance. Start with our online Business Finance Guide.
More Information?
Contact MCP:
1300 510 816 or your Finance Partner
enquiry@mcpfinancial.com.au
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The team at MCP Financial Services has specialised expertise in structuring complex debt arrangements. We can assist with review and restructuring, refinancing and renegotiating.