Too many property owners are paying the price for not obtaining independent advice when they arranged the finance for their property purchase.
No matter how informed you are or how good a loan might seem, discuss the loan structure & your options with a property lawyer before committing to the loan.
Tip 07 – Establish A Contingency Fund
- A common mistake for buyers is spending all of their finances on the purchase, repair and upgrade of a property – and having little in reserve!
- It’s recommended that you have surplus money set aside & available to use as a contingency fund for unexpected events and emergencies
- Establishing a specific type of bank account to place surplus funds can be a useful component of your risk management plan.
- The bank account should be a Loan Offset Account or a Line of Credit Account, which is linked to the loan account.
- These funds are immediately available when an emergency arises, but are put to the most effective use by reducing the interest charges for the loan.