Buy­ing Prop­erty

Think­ing Noosa and Sun­shine Coast

Noosa Life and Style - - THINGS TO DO -

Buy­ing prop­erty is an ex­cit­ing op­por­tu­nity in ev­ery­one’s life, es­pe­cially with the life­style op­por­tu­ni­ties of the Sun­shine Coast While the prospect of buy­ing a new home or ex­pand­ing your your in­vest­ment port­fo­lio is lib­er­at­ing, it can also be stress­ful.

Agood way to min­imise this is by be­ing mind­ful of cer­tain re­quire­ments and ex­pec­ta­tions when pur­chas­ing. These in­clude con­sid­er­ing el­e­ments such as your fi­nan­cial sit­u­a­tion, the Con­tract, loan re­quire­ments and hav­ing re­al­is­tic time ex­pec­ta­tions. Ac­quir­ing prop­erty can be the most ex­pen­sive and im­por­tant pur­chase you’ll ever make. With sen­si­ble re­search, plan­ning and pa­tience it can make for a very smooth and stress-free trans­ac­tion. Before you start, con­sider how you will be en­ter­ing in the Con­tract to gain own­er­ship of the prop­erty. This may be as an in­di­vid­ual, a com­pany, a trust, by a su­per­an­nu­a­tion fund, as joint ten­ants or ten­ants in com­mon. A con­ver­sa­tion with your Ac­coun­tant, Solic­i­tor or Con­veyancer will de­ter­mine what is in best your in­ter­ests, as tax im­pli­ca­tions and es­tate mat­ters will also need to be con­sid­ered and ad­dressed. Most peo­ple need to bor­row fi­nance to pur­chase a prop­erty in to­day’s mar­ket. Before com­mit­ting to a pur­chase, you should first de­ter­mine your fi­nan­cial sit­u­a­tion. Be mind­ful of how you in­tend to pay for the prop­erty and how all other re­lated costs will be ac­counted for. Pre­pare your­self for this by ar­rang­ing a meet­ing with your ac­coun­tant or fi­nan­cial ad­vi­sor and with lend­ing bod­ies such as a bank or credit union. Be hon­est and di­rect with how much you are able to bor­row and within what time­frame. Cal­cu­late what you can af­ford to spend by com­bin­ing the amount al­ready saved with the bor­rowed amount and your liv­ing ex­penses. Re­mem­ber to plan for lender fees, stamp duty, le­gal/con­veyanc­ing and mov­ing costs. You may wish to have a val­u­a­tion done on the prop­erty if you are un­sure of the ap­pro­pri­ate price for the area you are pur­chas­ing in. A val­u­a­tion will help es­tab­lish a re­al­is­tic es­ti­mated value by analysing re­cent sales in­for­ma­tion and giv­ing you and your bank piece of mind that your of­fer is suit­able. It is quite pru­dent to pre­pare a check­list before you con­sider for­mally en­ter­ing into a Con­tract for sale or pur­chase of real es­tate. It is also im­por­tant to be mind­ful that the prepa­ra­tion, ne­go­ti­a­tion and ex­e­cu­tion of a Con­tract can take time. The stan­dard time pe­riod be­tween ex­change and set­tle­ment is 42 days, but if you wish for an ear­lier set­tle­ment, this can be dis­cussed with your solic­i­tor or con­veyancer and ne­go­ti­ated with the other side. Talk to us. You’ll be in­spired! Emily A N Stephen­son Li­censed Con­veyancer The de­posit amount is usu­ally re­quired to be paid on ex­change. Ex­change is when the con­tract is dated and be­comes a for­mal agree­ment. The de­posit amount is nor­mally 10% how­ever, you may have an op­tion to ne­go­ti­ate the re­duc­tion of the de­posit to 5% or some other amount or use a de­posit bond. If bor­row­ing, writ­ten un­con­di­tional ap­proval of your loan will need to be pro­vided before con­tracts can be ex­changed. It is also vi­tal that you have good knowl­edge of the con­di­tion of the prop­erty that you in­tend to buy before ex­chang­ing con­tracts. The best way to as­cer­tain this in­for­ma­tion is by or­der­ing a pest and build­ing in­spec­tion re­port. These re­ports con­sider the qual­ity of the build­ings and im­prove­ments and will in­di­cate whether there are any sub­stan­tial faults or in­fes­ta­tions in the prop­erty that you may not have pre­vi­ously been aware of. Most lend­ing au­thor­i­ties also re­quire these before fi­nance will be ap­proved. The ben­e­fits of hav­ing these re­ports are know­ing in ad­vance what (if any) prob­lems there are with the prop­erty. You may use the in­for­ma­tion to ne­go­ti­ate a lower price or gain spe­cial­ist ad­vice about any ma­jor prob­lems and how it will af­fect the prop­erty over time. Check that the com­pa­nies car­ry­ing out these in­spec­tions have pro­fes­sional in­dem­nity in­sur­ance. This will cover the com­pany and there­fore your costs should any mis­takes oc­cur.

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