FAQs Section
Welcome to our FAQ guide for property acquisitions with InvestorKit. We've compiled the most common questions from our clients into clear categories, drawing from thousands of successful property purchases across Australia. Each section provides straightforward, practical answers to help you navigate your investment journey with confidence.
Client Portal
Notification for Clients on Portal
Overview
When a property is presented to a client, it is important they receive timely notifications across multiple channels. This ensures no property opportunity is missed and supports clear, consistent communication between the PAS and the client.
Notification Process
- Portal Message
- The property is uploaded into the client’s portal, triggering a message within the system.
- App Notifications (if enabled)
- Clients who have enabled notifications on the app will receive:
- A push notification from the app.
- An email notification advising them that they have a new message in the portal.
- Email Reminder
- If the client does not open the portal message within a set time frame, the system will send an additional reminder email prompting them to check the portal.
- Direct Contact from PAS
- The PAS will attempt to call the client at the time of presenting the property.
- If the client does not answer, the PAS will follow up with a text message to ensure the client is made aware.
Why This Matters
- Creates multiple touchpoints to reduce the risk of missed communication.
- Provides a structured and consistent process across all clients.
- Supports faster client response, ensuring property opportunities are reviewed without unnecessary delay.
Data/Research
The region
Purchase Process
Acquisition Costs
What Will InvestorKit take care of?
Cashflow
Long term growth
InvestorKit Tools
Strategy
The Property
Does InvestorKit purchase community title properties?
A: Yes, InvestorKit is open to purchasing community title properties, but only if the investment fundamentals are strong. We assess them on a case-by-case basis, focusing on:
- Financial Performance: The rental yield must comfortably cover body corporate fees and other associated costs. The numbers must stack up.
- Risk of Shared Expenses: We evaluate the potential for large, future body corporate expenses. If the risk is low and manageable, that’s a positive sign.
- Transparency: Full disclosure of body corporate fees, maintenance responsibilities, and any planned capital works is essential for due diligence.
We’ve had success with community title properties before like one in Coral Cove, Bundaberg when all factors aligned. If the numbers don’t work or there’s too much risk, we’ll pass. It's not an automatic no, but the deal must be solid.
Q: Can we purchase an off-market property that currently has NDIS tenants on a month-to-month lease?
A: InvestorKit generally don’t take on properties with NDIS, NRAS, or other government scheme tenants in place. However, if the existing agreement has expired and the property can be leased immediately under a standard residential lease, we may consider it.
Before proceeding, we would need to:
- Review a copy of the current agreement
- Review a copy of the current lease
- Receive written confirmation that the property can be purchased and leased as a standard residential investment
Everything must be confirmed in writing before we can consider purchasing a property under these schemes.
Negotiation
Personal Background/Experience
Third Parties/Stakeholders
Finance
Q&A: What happens if we send a finance extension request and the seller doesn't respond?
Question:
“For our Victorian clients — has anyone experienced a situation where a finance extension was requested, but the seller didn’t respond? The agent (who’s a director) said that technically, we don’t have to rescind if we’ve sent out the extension request and haven’t received a response. Is that actually true in practice? I want to make sure I don’t have to rescind unnecessarily.”
Answer:
Yes, this situation has come up before. Here's how it typically works based on past experience:
- If InvestorKit’s instruction is to request an extension, and that request is sent before the finance clause date or cooling-off deadline, then technically, we are in the clear from our side.
- In that case, the seller has two options:
- Accept the extension, in which case the contract proceeds as extended.
- Decline the extension, which then activates the finance clause — the deal terminates, the deposit is returned, and the client exits the contract.
It’s important to know: we (the buyer’s side) do not rescind in this situation. The seller has the power to rescind if they choose not to approve the extension.
What Makes for a Strong Process:
- We recommend always working to the “48-hour rule”:
- Notify your solicitor and client
- Send follow-ups
- Show a documented trail of action and communication
At 48 hours before the finance clause deadline, if the finance approval hasn’t been received yet, proactively request an extension.
This gives you enough time to:
- If no reply comes from the seller’s side after you’ve sent the extension request, at least your actions demonstrate:
- You acted ahead of deadline
- The solicitor was informed
- You requested clearly and followed up
This creates a clear audit trail that you did everything possible to manage the situation.
Key Takeaways
- Do not rescind automatically just because you haven't heard back.
- The seller must respond—they can accept or decline the extension.
- If they decline, the buyer receives their deposit back and the deal ends.
- Always refer to the contract conditions, and involve the solicitor for confirmation.
Tax
Property Management
Legal
FAQ Questions
Can we talk about the property tomorrow?
Do you need me and my partner there?
What is the local infrastructure for X suburb in Melbourne?
What’s the typical yield in this area?
What is better, 3 or 4 bedroom houses?
Do we book the building & pest inspection for the client?
Why is your CMA price different to online valuation tools?
Does the crime rate in this area matter?
Does the distance to the CBD matter?
Is there too much land supply in this region?
What type of people live here?
What type of work do people do that live here?
Is it a family friendly area?
Is it low maintenance?
Is it structurally sound?
What is the build quality?
Because it’s older will it have more maintenance issues?
It’s already grown, why would it grow again?
This property sold for X 2 years ago, now you’re saying it’s X, is that too much?
Where are you based?
Did you inspect the property?
Questions about data i.e is it good or not?
The Summary performance scorecard - If it’s orange or red is that bad?
What is the difference between bushfire management overlay and bushfire prone?
When do we expect the market to take off?
When was the property built?
Is there a floorplan?
Are these the latest photos?
Is it tenanted?
Why are they selling?
How long have they owned it?
Have they done any renovations?
Did that renovation require building approval?
Are there any easements?
What is it worth?
Why do you apply market heat?
How did you come to that price?
Why is that comparable property cheaper?
What’s your negotiation strategy?
Do we get a bargain or under market value with you?
What is the land tax?
What is the cost of smoke alarm, gas, electrical compliance in VIC?
Why have you only forecasted 5% capital growth?
What is the conveyancing fee?
When does it become cash flow positive?
How do we see our after tax cashflow?
How is land tax calculated?
What’s the stamp duty?
What’s the offer process?
What’s the deposit required?
What’s the settlement?
What’s your opening offer?
When will we hear back from you? (finalising presentation)
What info do we need to provide for an offer?
When do we get the bare trust set up?
When do we do the building & pest?
Do I need a rental appraisal?
Do I need to tell my broker anything or will you?
Multiple Unit Purchases
Here’s how we approach purchases that involve multiple residential units in a single transaction.
Fee structure
If a client is purchasing 3 units in one transaction, we treat it as a standard deal and charge one BA fee.
If they’re buying 4 or more units, we apply Commercial Pricing — but the Acquisitions team still runs the process as usual. The only difference is the pricing and scope, which reflect the added complexity.
Minimum price and timing
We only consider these deals if the total purchase price is $1 million or more (as of the latest update).
Expect a 6+ month wait time — these opportunities are rare and take longer to secure and assess.
Due diligence
We carry out all the usual checks, plus one extra: the property must either be strata titled, or capable of being strata titled before settlement.
Locations
These purchases need to be in the same areas we already buy in for standard residential deals. We don’t expand into new postcodes just for multi-unit deals.
Strategic fit
Depending on the client’s position, the Strategy team may recommend a different approach after reviewing their portfolio.
If the deal is around $1.5 million or higher, we’d usually recommend referring it to a commercial buyer’s agent, as that may be more suitable for the client's goals.