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Most importantly, one does not need to rush the transaction/deal.  Time is on your side. Use the time to review and research property data/sales to establish fair market value or better than fair market value.
If it is an investment acquisition, look to achieve a good yield, one that may outperform the average. Check your numbers and triple check there are no mistakes. 
Speak to your bank or broker and provide them with as much detail as possible. Just because you have been approved for finance does not mean the bank or institution will not change their mind on the finance structure and in particular during these uncertain times.
In addition, keep the agent informed of progress during exchange and settlement. In my opinion a volatile share market does not spell “doom and gloom” for property. There is opportunity in the market if you are prepared to invest the time. 
Traditionally property experts talk about “time in market”, however in uncertain times like we are in now provides the perfect opportunity to “time the market” along with “time in market”.
Byron Rose is the president of the <a target="_blank" title="Real Estate Buyers Association of Australia" href="https://www.rebaa.com.au/">Real Estate Buyers' Association of Australia</a> and is principal of <a target="_blank" title="Rose&amp;Jones" href="https://roseandjones.com.au/">Rose&amp;Jones</a>.
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byronrose-irE44b7JNs

Time is on your side in uncertain market

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Question, 
 
My partner and I have been renting in inner-city Sydney for the last five years and have a good bit of money saved up to buy our first home. However, we don’t want to move out to the outer suburbs – we like to be close to all the action. Would it make sense for us to buy a house we could afford in the outer suburbs and rent it out instead of buying a place for ourselves? Or would we be better off buying a tiny unit in the inner city to live in?
 
Answer:
 
That’s a very good question and very much driven by what your current income situation as well as your budget. For the purpose of this exercise I will assume that you wish to spend $500,000 on your investment; both options are illustrated below.
 
Option 1: Purchase a house in the outer suburbs and continue to rent in your current location
 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="395" colspan="2" valign="top">
OPTION 1: OUTER SUBURB HOUSE Budget of $500,000 
</td>
</tr>
<tr>
<td width="243" valign="top">
Deposit: 10%
</td>
<td width="151" valign="top">
$50,000.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Loan
</td>
<td width="151" valign="top">
$450,000.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Annual interest  repayments at 6.75%
</td>
<td width="151" valign="top">
$30,375.00
</td>
</tr>
<tr>
<td width="243" valign="top">
REVENUE from rent at $500pw 
</td>
<td width="151" valign="top">
$26,071.00 PA
</td>
</tr>
<tr>
<td width="395" colspan="2" valign="top">
EXPENSES PA
</td>
</tr>
<tr>
<td width="243" valign="top">
Management  fees at  6%
</td>
<td width="151" valign="top">
$1564.26
</td>
</tr>
<tr>
<td width="243" valign="top">
Council rates approximately
</td>
<td width="151" valign="top">
$600.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Water rates approximately
</td>
<td width="151" valign="top">
$300.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Repairs and maintenance
</td>
<td width="151" valign="top">
$500.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Insurance
</td>
<td width="151" valign="top">
$500.00
</td>
</tr>
<tr>
<td width="243" valign="top">
TOTAL EXPENSES
</td>
<td width="151" valign="top">
$3,464.26
</td>
</tr>
<tr>
<td width="395" colspan="2" valign="top">
ANNUAL COST
</td>
</tr>
<tr>
<td width="243" valign="top">
NET PROFIT (Revenue – Expenses)
</td>
<td width="151" valign="top">
$22,606.74
</td>
</tr>
<tr>
<td width="243" valign="top">
Annual Repayments  at 6.75%
</td>
<td width="151" valign="top">
$30,375.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Short Fall / Contribution PA
</td>
<td width="151" valign="top">
$7768.26
</td>
</tr>
<tr>
<td width="395" colspan="2" valign="top">
GROWTH Allow for 5% per annum
</td>
</tr>
<tr>
<td width="243" valign="top">
COST of RENT (where you current live at $500pw)
</td>
<td width="151" valign="top">
$26,071.00 PA
</td>
</tr>
<tr>
<td width="243" valign="top">
TOTAL COST (shortfall +rent) *
</td>
<td width="151" valign="top">
$33,839.26
</td>
</tr>
<tr>
<td width="243" valign="top">
TOTAL COST per WEEK
</td>
<td width="151" valign="top">
$650.75
</td>
</tr>
<tr>
<td width="243" valign="top">
TOTAL COST per DAY
</td>
<td width="151" valign="top">
$92.71
</td>
</tr>
</tbody></table>
 
*You would have to cover the annual short fall as well as pay the rent in your current location, which might be $500 per week.
 
Option 2: Purchase and occupy a small inner-city unit 
 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="395" colspan="2" valign="top">
OPTION 2: SMALL APARTMENT Budget of $500,000 
</td>
</tr>
<tr>
<td width="243" valign="top">
Deposit: 10%
</td>
<td width="151" valign="top">
$50,000.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Loan
</td>
<td width="151" valign="top">
$450,000.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Annual interest  repayments   + Principle = 7.25%
</td>
<td width="151" valign="top">
$32,625.00
</td>
</tr>
<tr>
<td width="395" colspan="2" valign="top">
EXPENSES PA
</td>
</tr>
<tr>
<td width="243" valign="top">
Levies
</td>
<td width="151" valign="top">
$1,600.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Council rates approximately
</td>
<td width="151" valign="top">
$600.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Water rates approximately
</td>
<td width="151" valign="top">
$300.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Repairs and maintenance
</td>
<td width="151" valign="top">
$500.00
</td>
</tr>
<tr>
<td width="243" valign="top">
Insurance
</td>
<td width="151" valign="top">
$500.00
</td>
</tr>
<tr>
<td width="395" colspan="2" valign="top">
ANNUAL COST
</td>
</tr>
<tr>
<td width="243" valign="top">
TOTAL COST PA 
</td>
<td width="151" valign="top">
$36,090.00
</td>
</tr>
<tr>
<td width="243" valign="top">
TOTAL COST per WEEK
</td>
<td width="151" valign="top">
$694.71
</td>
</tr>
<tr>
<td width="243" valign="top">
TOTAL COST per DAY
</td>
<td width="151" valign="top">
$98.97
</td>
</tr>
</tbody></table>
 
As you will see, both are very similar in the cost of ownership.  Over all the decision to invest in property is a good one; both will prove to be sound investments over the ownership cycle. However one compelling point is that you will not pay capital gains tax on your home, which in the long term will save you a significant amount if you wish to divest out of your acquisition.
Byron Rose is the president of the <a target="_blank" title="Real Estate Buyers Association of Australia" href="https://www.rebaa.com.au/">Real Estate Buyers' Association of Australia</a> and is principal of <a target="_blank" title="Rose&amp;Jones" href="https://roseandjones.com.au/">Rose&amp;Jones</a>.
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Byron Rose

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