Advice For Buyers
Create a wish list
Your needs will influence where and what you buy. Therefore it is good idea to start with a list of everything you are looking for in a property, though bear in mind that you might need to compromise some of your wishes. We at Ray White Graceville recommend selecting 4 'must haves' on your list, i.e. number of bedrooms, bathrooms, living areas, position, land size, house style etc.
Research the market place
Seek advice from your Ray White Graceville agent, they can provide comparable sales in the area. The Internet is another good source for information, reports and statistics and can be done conveniently from home. Drive around the area, visit open homes and attend auctions to see what is happening in the market place.
Where to find a property?
Ray White Graceville advertises every week in the Saturday Courier Mail Real Estate Lift-out. Our properties are also on display in our office window, property guides, internet and we have a weekly email of open homes sent out free of charge to all buyers. A convenient method is to subscribe to automatic listing updates, which email you new listings as they hit the market. Ray White Graceville has an e-newsletter which lets you be amongst the first to know of a new property listing and emails the forthcoming auctions and open home times.
Be Financially Prepared
Many buyers begin looking for a property without even knowing what they can afford to spend. This can be a big mistake, for many buyers end up disappointed when having found their dream home to only find out that they do not have the borrowing capacity to purchase it.
On the other hand, buyers can restrict themselves to a certain price without knowing that their real borrowing capacity could fulfill more for their wish list. Ray White Graceville recommends buyers to seek financial advice from a lending institution or mortgage broker to determine their borrowing capacity.
For an obligation free quote contact Ian Morgans (B.Com) mobile 0401 140 928 from Ray White Financial Services.
Buying a First Home
If purchasing a property as your principal place of residence for the first time, you may be eligible for the Federal Government's First Home Owners Grant. The grant was introduced to offset the effects of GST. Under current legislation the Federal Government offers a grant when you build or buy your first home, but you must fulfill certain criteria to be eligible. Additionally the State Government provides Stamp Duty Concessions up to a purchase price of $500000. If you require further information please contact the Queensland Office of State Revenue: www.osr.qld.gov.au Ph: 07 3404 3956 or 1300 300 118
Buying as an Investor
Buying an investment property is different from buying as an owner occupier. Your decision will not be based on emotion but things like rental yield, body corporate fees of unit purchases and how attractive it is to the rental market. Buying an investment property also has tax benefits associated with negative gearing and can be less volatile than purchasing shares.
Ray White Graceville has several avenues to assist the investor. We have a specialised property management department which can keep you up-to-date with the current rental market and new investment opportunities. Our sales team is educated on what the rental market demands and can recommend suitable properties.
When purchasing an investment always remember to research your market and seek advice from a professional.
Making an Offer
So you have found the property that includes the must haves of your "wish list", what do you do next? Answer, your make an offer! In doing so it is important to understand the terms of a contract before signing and below is a brief discussion of the main points you will need to know.
At Ray White Graceville your real estate agent will mediate the negotiation process between yourself and the vendor until terms can be agreed.
Contract Price and Deposit - The main terms of the contract are the price you agree to pay, the deposit amount and when it is payable. Under Queensland legislation the deposit amount is up to 10% of the purchase price.
Deposit Bonds - If you do not possess enough cash deposit a Deposit Power Bond can be used as a substitute. This can be arranged through your broker.
Settlement Date - This is the day the seller hands over transfer documents and the buyer pays the Contract Price. The date is normally set 30, 60 or 90 day after the contract date. At Ray White Graceville confirmation of settlement from both parties (Solicitors) is required to release keys to the buyer and any deposit monies held in trust to the seller.
Buyers Risk - Even though the transfer takes place at settlement the property is at the risk of the buyer from 5pm the next business day from the contract date. Therefore it is very important to have the property insured immediately. When purchasing through Ray White Graceville you automatically receive a cover note from Ray White Insurance for the first 30 days.
Conditions -The 2 most common conditions of a contract are the finance clause and building and pest inspection clause. Should you require these to be conditions of your contract you will be given a due date to meet the conditions. Should you not receive finance or the building and pest report is not to your satisfaction you may terminate the contract without penalty. However the other party must be notified otherwise the contract condition will be deemed accepted. Other special conditions can be written into the contract.
Cooling Off Period - From the day the buyer receives a fully signed contract the 5 working day cooling of period begins. This gives the buyer the right to terminate the contract for any reason, even an unconditional contract. A penalty of 0.25% of the purchase price may still payable to the seller if a buyer terminates the contract under this clause. The cooling off period can only be waived by your solicitor.
Unconditional Contract - This is a contract of sale without any conditions or a contract of sale with all conditions met. The 5 day cooling off period still applies (but with penalty) if it has not been waived by a solicitor.
Buying at Auction
Buying at auction is probably the simplest and most straight forward method of purchasing a property. The process is quick, transparent and simple.
Once you've identified the property you desire, the simple steps to follow are:
Preparing for the auction
Let your salesperson know that you have interest to ensure you are kept fully informed of all developments and to ensure you are contacted should a pre-auction offer be made.
• Satisfy yourself as to any building or structural matters-you may wish to obtain a building report from a reputable company specialising in "pre-purchase" inspections.
• Satisfying yourself as to any local authority compliance
• You may wish to get your solicitor to peruse a copy of the Auction Conditions of sale (Certificate of title attached) to satisfy yourself there are no contractual issues pertaining to the sale. The Conditions of Sale will also state the chattels, settlement date and any special clauses relating to the sale.
• Ensure your finance is in place as all auction purchases are unconditional. If you are the successful purchaser at the point of signing the contract you will be required to pay a sum of 10% of the purchase price to our trust account.
Note: If you wish to alter any of the standard conditions (usually pertaining to settlement or deposit) this may be arranged through the sales person if the vendor is in agreement (Side Agreement). This must be done prior to the auction.
We always advise people to arrange finance a little beyond what you would like to pay - property is a long term investment and nothing is more frustrating than losing your dream for the sake of a few thousand dollars.
Bidding
All buyers wishing to bid must register prior to the commencement of the auction. There are no tricks to bidding - simply let the auctioneer know you are bidding (usually by raising a hand). If the property has reached the Reserve and you hold the highest bid you will become the joyful new owner - if it goes beyond you, you have a period of disappointment but have learnt a great deal about the current market.
If you see other people bidding for any property at our Auctions, be assured that these are all genuine interested bidders/buyers - we do not have "dummy bidders".
At times potential bidders and buyers may hold back and wait for others to do the bidding, wait for the auctioneer to take $1,000 bids, or for the property to be "on the market". Given this, the Contract of Sale and the Sale of Goods Act 1908 permits the auctioneer to place bids on the vendors behalf in order to move bidding towards a price level acceptable to the vendor.
Any vendor bids, which are identified as such, will only be exercised by the auctioneer at his discretion and will most certainly be below the reserve price and below a price level which the vendors would consider accepting
Good luck with your purchase.