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Buying a property is one of the biggest
financial decisions you will make. It's an exciting time
but it's also daunting, and that is why it is reassuring
to know PRDnationwide Coolum Beach is here to help.
This guide will help you through the
process of finding the property of your dreams with information
such as finance and legal terms that may be new to you
and the steps involved in buying property
Home ownership remains "the
great Australian dream", regardless of whether it
is for investment or residential purposes.
Some people
prefer houses; others might be looking for a unit,
townhouse or villa. Choosing the property type is
just the first of the decisions. How many bedrooms
do you need? How many bathrooms? Do you need a car
space or a garage? Would you like a garden or prefer
a terrace, and what size kitchen do you require?
All these need to be considered so that properties
you look for meet your needs.
Then you need to think about
where you want to live. Your budget might help
that decision, but you still need to consider proximity
to schools, transport, shops and sporting facilities
to ensure the property suits your lifestyle or,
if it is an investment, those you expect as tenants.
When searching for a property,
it's good to select a property with at least one
unique feature. It could be a renovated bathroom,
large kitchen, original Federation fixtures or
beautiful landscaped grounds. Different properties
are harder to replace, so historically they have
a higher resale value. |
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Calculate what repayments you can You also need to allow for additional
afford. As a rule of thumb, lenders will base the loan on an amount
that does not exceed a set percentage of property, stamp duty on the
mortgage, gross (pre-tax) income.
It makes sense to have your finance organised
before you start looking. This ensures a smooth buying
process so that if you find something you like, you know
your limit and have your deposit ready.
You also need to allow for additional
costs such as legal, conveyancing, stamp duty on
the transfer of the loan, application fees, moving expenses,
repairs and maintenance, insurance fees and adjustment
fees such as water and council rates.
There are numerous ways to sell
a property, so there are a variety of places to find
your property.
You have several options:
• Register with our Property Wish List
• Word of mouth - tell lots of people, they might know a place for sale
that would suit you
• Register your intent to buy with PRDnationwide Coolum Beach
• Research local newspapers
• Search real estate websites on the internet |
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Inspection times are usually displayed on the marketing material. There
are two types: open house or inspection by appointment. In an open
house arrangement the public is invited to view a property at set dates
and times. Inspection by appointment requires you to contact the sales
agent to arrange a time to inspect the property. Once you have inspected
several properties, you will have a good idea of what is available
and what your budget will buy.
When you have chosen the property you
plan to buy, you may choose to have a pest or building
inspection. If the property is being sold at auction, it
is essential that these inspections are completed beforehand,
and you review the contract of sale.
It is important to note that the laws
differ in each State, so consult with your legal representative
or your local agent - PRDnationwide.
The offer and acceptance process is quite formalised, so it is important
to understand the process before making an offer.
For a property that is for private treaty
sale at a price:
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The agent will submit all offers to the seller
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The property remains on the market until an offer is accepted
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Your offer may include a finite date
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Your offer can be made subject to finance
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Your offer can be made with specific items being omitted or included
in the contract e.g. to exclude an above ground pool. These special conditions
must be written into the contract.
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You can make an offer containing a deposit, prior to acceptance, to demonstrate
your intention to purchase. (The balance of the deposit is paid after
acceptance). Should your offer be declined, your deposit will be refunded.
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An offer is not legally binding to both parties until both the buyer
and the seller have signed the contract.
Once your offer has been accepted, you are required to pay the deposit
as specified in the contract. The seller will then sign the offer document,
making a "contract", legally binding you to the sale.
Auctions are held
either on-site or in-rooms. It is essential that
your finances are in order, that you have money ready
to pay a deposit and, if you intend borrowing, a
certificate from a mortgage lender indicating how
much you can borrow.
Prior to auction, your solicitor
must check the terms and conditions of the Contract.
If your bid is successful, you
are required to pay the deposit and sign the contracts
immediately.
A personal or bank cheque is usually acceptable - consult with
a PRDnationwide agent beforehand. Each State is different, so consult
your agent, but there is generally no cooling-off period, you are
now committed to buy.
If the bidding does not reach
the reserve price, the house is not sold, and is
termed "Passed In". The highest bidder
at the Auction now has the first opportunity to
negotiate with the seller. |
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Even people with some experience in bidding at auction can find the experience
a little daunting. However, with an understanding of the auction process
and the actual methods of bidding, much of the nervousness can be taken
out of the process.
We hope this will assist you to successfully
bid and buy at auction with a minimum of fuss. Please read
this document and do not hesitate to ask your PRDnationwide
representative any questions you may have.
Satisfy yourself with the property
and prepare yourself for the auction with the following
steps:
- Inspect the property several times
to ensure that you are comfortable with its size, style,
location and suitability etc.
- Set the figure in your mind that you
are prepared to bid up to.
- Approach your lending body - bank,
building society, credit union and so on, to establish
your loan capabilities and gain the necessary approvals.
- Make sure you know what the settlement
terms of the contract will be should you be the successful
bidder.
- Arrive at the auction at lest 15 minutes
before it begins, to ask the salesperson any last minute
questions and advice on bidding you may have.
- View the contracts and all property
details, which will be on display near the podium.
Note: Offers can be made prior to the
auction. Discuss this with your PRDnationwide representative.
The auctioneer will commence by reading out the conditions of sale and
details of the property. Questions may be asked for relating to the
auction conditions or the property.
You may bid by:
- Calling out a bid, responding to the
auctioneers call by nodding your head, lifting a finger
or waving a document. Simply gain the auctioneer's attention.
- Do not be intimidated by another bidder
who may bid immediately after you. They are only trying
to dominate the bidding and attempt to reduce the competition.
- If you wish to bid a figure less than
the auctioneer is calling for, feel free to do so, it
will probably be accepted.
- Make sure you are the last bidder
if the property is 'passed in', which will ensure you
have first right to negotiate with the vendor at the
reserve price.
If you are the successful bidder:
- You will be required to sign the contracts
of purchase and pay your deposit (usually 10%). In most
instances, a personal cheque will be accepted.
- If the property has not sold, and
you are interested in the property, approach the salesperson
handling the property and let them know. They will help
you.
- Buying at auction is a logical process
of interested parties competing with each other in an
attempt to purchase property at market value. The person
who perceives the highest value in the property will
be the final bidder and probably the new owner. So don't
be afraid of bidding, as the person you are bidding against
is probably as nervous as you are.
If you have any questions, do not hesitate
to ask for assistance. Your PRDnationwide representative
will be more than pleased to assist. We do it regularly.
By law, all deposit monies must be Real Estate agents do not receive
any banked into an official trust account on interest or benefits whatsoever
from the next day they are received or by no holding deposits on behalf
of the seller. later than the next business working day.
It is important for buyers to
recognise that the legal process governing what happens
after an offer has been accepted varies between States.
It can be a lengthy process. The property does not
become yours when you hand over the holding deposit.
It is not until both parties have signed the contract
and it becomes unconditional and binding that it
is time to celebrate.
PRDnationwide Coolum Beach Real
Estate Agents are professionals, and will keep
in touch throughout the legal process to advise
you of any developments. We will make sure that
your purchase of your little piece of Australia
is as worry-free as possible. |
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Auction: Public
sale of property to the highest bidder, providing the reserve
price is met or exceeded.
Breach of contract: Breaking
terms of a signed contract
Caveat: A
document lodged with the Titles Office by any person to
ensure the property is not sold without their knowledge.
Caveat Emptor: a.k.a "Let
the Buyer Beware". Places the responsibility of the
buyer to be satisfied with the item before buying a property.
Chattels: Personal
property. There are two types. Real Chattels include buildings
and fixtures. Personal Chattels include clothes, furniture
etc.
Common Property: Strata
Titles areas shared by all owners.
Contract Note/Terms
and Conditions: Written agreement outlining terms
and conditions of a property sale.
Contract of
Sale: A legal document that sets out all the terms
and conditions the seller and purchaser have agreed on.
Conveyancing: The
legal process of transferring property ownership from seller
to buyer.
Covenant: Conditions
affecting the use of property or land written into the
title.
Deposit: Approximately
10% of the purchase price placed in trust as evidence of
intention to buy. Non-refundable after the contracts becomes
unconditional.
Easement: The
right held by a person to use land belonging to someone
else for a specific purpose. Mains, drains and water pipes
are usually covered by an easement.
Encroachment: When
a building overhangs someone else's property or a fence
is built over the dividing line between two properties.
Encumbrance: A
mortgage, easement or liability over a property impeding
its use or transfer.
Exclusions: Any
item not specified as part of the sale of the property.
i.e. dishwasher
Equity: The
difference between the market value of the property and
any outstanding loans on the property.
Freehold: An
owner's interest in the land where the property and the
land on which it stands both belong to their owner indefinitely.
Highest Bidder: The
person who posts the highest bid at an Auction will purchase
the property provided the reserve price had been met or
passed.
Offer to purchase: A
formal legal agreement, which offers a specified price
for a specified property.
Passed In: A
property will be passed in at Auction if it does not meet
the Reserve Price.
Private Treaty
Sale: Sale of a property through an agent, involving
private negotiations and contracts.
Reserve Price: The
minimum price the seller has specified they will accept
at Auction.
Stamp Duty: A
state government tax calculated on sale price, varying
between states.
Settlement: A
date is set for the settlement of the sale. At this point
the balance of the purchase price is paid and ownership
of the property transfers from the seller to the buyer.
Transfer: A
document registered at the Land Title Office and noted
on the Certificate of Title, which verifies change of ownership
of a property.
Unconditional/Exchange
of Contracts: When signed copies of the Contract
of Sale are physically swapped between the seller and
the purchaser.
Vendor: The
seller
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