Signing your life away!

Do you know what you are signing when you are buying a rental property? There are numerous forms to sign and while a few will look straight forward, I'm sure there are many that seem a bit baffling, but you just sign anyway.

I would advise you to stop!

The old adage "read the fine print" is even more important when it comes to property. But not just reading the fine print - but understanding it. If it all seems too daunting then turn to your team who will help you not only understand what you are getting into to (and how to get out of it, if necessary), but will be able to make sense of this new language.

Forming a qualified trustworthy and experienced property investing team is likely to be the difference between investing in one rental property or creating a profitable property portfolio. The team could be made up of a Lawyer, Broker, Buyers Agent, Property Manager, Financial Advisor. You may not need all of these people, or maybe you do, but your team will be able to help you work through the minefield of property investing paperwork.

So back to those forms.

Do you really know what it means when the contract talks about a 'Fixed and Floating Charges?',or a 'Director's Guarantee?' What about the Stamp Duty you need to pay? 

If you are unsure then you need to stop and ask your team what it means, and what it means to you, if things turn 'pear-shaped'. The terms may sound intimidating, but as long as you know what they mean and understand how it may impact you long-term, then you will be far more confident and be able to make better decisions. Most new investors will sign the paperwork, but not really understand it, and then it's only when things are going wrong that they understand the true impact of what they signed.

So do you know what you are signing? Have you signed something without truly understating what it all meant?