10 Rules to Follow for Effective Property Purchase Advice

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Most property mistakes don’t come from the market — they come from decisions made before signing the contract of sale. Here are 10 property buying rules that we think buyers should go through before committing:

1. Know exactly what you’re signing 

The Contract of Sale and vendor statement define your legal and financial position. This includes settlement terms, inclusions, special conditions, and any restrictions on the property. If something doesn’t make sense, don’t assume — get it clarified. One overlooked clause can cost tens of thousands later.

2. Don’t rely on what agents say 

Agents and marketing materials are designed to present properties in the best light. Statements like “this can be extended” or “the tenant is solid” mean nothing unless they are included in the contract. Always verify independently and ensure anything important is documented.

3. Get your finance sorted first 

Pre-approval is not just a formality — it sets your budget and reduces risk. Understand your borrowing capacity, repayment levels, and lender conditions. Entering a contract without finance certainty, especially unconditional, can expose you to losing your deposit if funding falls through.

4. Only buy what you can afford 

Affordability is more than just getting a loan approved. You need to be comfortable holding the property through rate increases, unexpected repairs, or income changes. Just as important — know all your upfront costs and your required contribution. This includes deposit, stamp duty, and purchase costs, as well as how much cash or equity you need to complete the deal. Also factor in hidden ongoing costs such as land tax, council rates, insurance, and any government or strata levies. These all impact your real cash flow.

5. Do proper due diligence for real estate 

For residential properties, building and pest inspections can uncover structural issues, water damage, or hidden defects. For commercial properties, review lease agreements, tenant reliability, outgoings, and zoning. Equally important — check the title details. Understand easements, covenants, restrictions, or any encumbrances on the property. These can affect how you use, develop, or even access the property. Every assumption you don’t check becomes a risk you take on.

6. What you see is what you get 

The property is typically sold in its current condition. If there are damages, missing items, or things the seller has agreed to fix, these must be written into the contract. Take photos or videos at the inspection — they can be critical if disputes arise before settlement.

7. Don’t let anyone rush you 

Pressure is often used to push decisions before proper checks are done. Whether it’s “another buyer is ready” or “you need to sign today,” take a step back. A good decision should still make sense after you’ve had time to review everything properly.

8. Get a good property lawyer involved early 

A lawyer doesn’t just review documents — they identify risks, explain legal implications, and negotiate better terms where needed. Engaging them early means you’re protected before signing, not trying to fix issues after the fact.

9. Structure your purchase properly 

How you buy matters just as much as what you buy. Loan structure (fixed vs variable, interest-only vs principal & interest) and ownership structure (personal name, company, trust) affect tax outcomes, borrowing capacity, and long-term flexibility. The wrong structure doesn’t just cost more tax — it can also limit your future financing options and reduce how much you can borrow later.

10. Build the right team 

Property decisions involve legal, financial, and tax considerations. A coordinated team — broker, lawyer, and accountant — helps you see the full picture. This reduces blind spots and ensures your decision aligns with both your short-term needs and long-term goals.

Whether it’s your home or an investment, the goal isn’t just to buy — it’s to buy well and sleep well after.