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  • Next steps: What happens after you secure a loan deposit?

    Next steps: What happens after you secure a loan deposit?

    On the path to home ownership, saving a deposit is arguably the biggest hurdle, but what happens next?

    Tina Wodecki, a RAMS Home Loan Specialist from Ryde in NSW, and Taku Ekanayake, a 29-year-old “rent-vester” from Sydney, explain exactly what first-time buyers should do after securing a deposit.

    Taku says working out what kind of buyer you are – an investor or traditional owner/occupier – is the first step.

    Next steps What happens after you secure a loan deposit_Pic1 - kitchen 
    Rent-vesting can be a way to have the best of both worlds when it comes to buying a house. Picture:

    Narrow the property search

    After planning to buy a home in Sydney to live in, Taku chose “rent-vesting” – buying an investment property in a cheaper location and renting a home elsewhere to live in. He now owns six tenanted properties and lives “where he wants” in a rental.

    “I was very committed to getting onto the property ladder and after researching for hours online and reading books, I came across the idea of buying an investment property, rather than a home first,” he says. “The numbers were more appealing to my position in life.”

    Next comes research. “The next step was about understanding what type of property would best fit,” Taku says.

    “I had to learn to understand the numbers behind the numbers. So, not just about how much deposit I needed, but also understand holding costs, mortgage repayments, interest only versus principal and interest repayments, rental yield and cashflow analysis,” he says.

    “Once I educated myself on these numbers, I was clearer on what type of property to look for,” he says.

    Next steps What happens after you secure a loan deposit_Pic2 - cat on chair 
    Once you’ve decided on your priorities when it comes to where you want to live, you can choose the best option on where you want to own. Picture:

    Seek sage advice

    Tina says talking to a home loan specialist at the beginning of your property search is wise. “We can explain the pros and cons of the different options and government assistance available to first home buyers, whether that’s with a house and land package, an established property or becoming an investor,” she says.

    An expert will also explain the financial side, Tina adds. “It’s not just about how much you can potentially borrow, it’s about what should you borrow to still be able to maintain a good level of living; a realistic figure,” she says.

    Armed with knowledge, the real search can begin. Like all millennials, Taku went online in the first instance.

    “A lot of my upfront research was done online and then by picking up the phone and calling agents, to try get access to upcoming properties (not yet on the market),” he says.

    Living in Sydney and looking to buy interstate where property was more affordable, Taku didn’t have the luxury of attending open houses.

    Next steps What happens after you secure a loan deposit_Pic3 - city skyline 
    Buying interstate means doing most of your property research online. Picture: Getty

    Inspect properties with an eagle eye

    “After months of research, I did go up to the specific area in Brisbane I had set my sights on, to do some ‘on the ground’ research. On my first trip, I put in an offer on a property and I was successful.

    “However, I would not have had the confidence to put in an offer on the spot if I hadn’t done my months of desktop research prior to making the trip,” Taku says.

    When looking to put in an offer, knowledge is power, Tina says, which is where property profile reports come in.

    “Our property profile reports provide in-depth information about the actual property you’re looking at buying, with things like how much it previously sold for, expected growth in the suburb, demographics and comparable properties.

    “It also explains how much it should sell for, which is very important for first home buyers to understand,” she says.

    Next steps What happens after you secure a loan deposit_Pic4 - friends with beer 
    Living close to friends and family can be priceless. Picture: Getty

    Negotiating on price is an art, but can be learned, according to Taku. “I took the time to learn to negotiate myself. I called a lot of agents to get a feel for how to communicate effectively with agents,” he says.

    “I read plenty of sales, persuasion and negotiating books too. Some great ones are 'The Art of the Deal', 'Sell or be Sold' and 'The 10 Times Rule'.”

    When it comes to finding professionals like conveyancers at the end of the buying process, personal referrals are often the best, Tina and Taku agree.

    Originally published on

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    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram

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  • Disclaimer:

    This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.